Question: An increase in interest rates affects aggregate demand by shifting the aggregate demand curve to the left, reducing real GDP and lowering the price level.

An increase in interest rates affects aggregate demand by shifting the aggregate demand curve to the left, reducing real GDP and lowering the price level. B. shitting the aggregate demand curve to the right, increasing real GDP and lowering the price level. C. shifting the aggregate supply curve to the left, decreasing real GDP and increasing the price level. D. shitting the aggregate supply curve to the right, increasing real GDP and lowering the price level As the interest rate increases, consumption, investment, and net exports fall but government spending increases, and aggregate demand increases. B. consumption, investment, and net exports increase, and aggregate demand increases c. consumption, investment, and net exports decrease, aggregate demand decreases. D. consumption increases but investment and net exports decrease: aggregate demand remains unchanged

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