Aggregate expenditures depend on the nominal interest rate because that is the rate that must be paid to the borrower.

Name: Aggregate expenditures depend on the nominal interest rate because that is the rate that must be paid to the borrower.
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Quizplus · Accepted Answer

Aggregate expenditures depend on various factors, including consumer and investment spending, government spending, and net exports. While the nominal interest rate can impact investment spending, it is not the only determinant of aggregate expenditures.

Aggregate Expenditures Depend on the Nominal Interest Rate Because That