Question: An increase in interest rates affects aggregate demand byPart 2 A . shifting the aggregate supply curve to the right, increasing real GDP and lowering

An increase in interest rates affects aggregate demand byPart 2A.shifting the aggregate supply curve to the right, increasing real GDP and lowering the price level.B.shifting the aggregate demand curve to the left, reducing 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.shifting the aggregate demand curve to the right, increasing real GDP and lowering the price level.Part 3As the interest rate increases,Part 4A.consumption, investment, and net exports decrease; aggregate demand decreases. B.consumption, investment, and net exports fall but government spending increases, and aggregate demand increases.C.consumption, investment, and net exports increase, and aggregate demand increases.D.consumption increases but investment and net exports decrease; aggregate demand remains unchanged.

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