As the interest rate rises,businesses invest __________ and the AD curve shifts to the __________.
A) more; right
B) more; left
C) less; right
D) less; left

Question

Quizplus · Accepted Answer

When the interest rates rise, businesses are discouraged from investing and borrowing, leading to reduced investment spending. This leads to a decrease in aggregate demand and a leftward shift in the AD curve. Therefore, the correct choice is D, less; left.

As the Interest Rate Rises,businesses Invest __________ and the AD