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Suppose that the central bank increases interest rates in an economy. How would this affect aggregate demand and inflation

Suppose that the central bank increases interest rates in an economy. How would this affect aggregate demand and inflation
asked 231k views
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Suppose that the central bank increases interest rates in an economy. How would this affect aggregate demand and inflation

asked
User Wakjah
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1 Answer

8 votes

Answer:

aggregate demand would fall and inflation would fall

Step-by-step explanation:

answered
User Giorgi Nakeuri
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