An increase in aggregate output causes the demand for money to______and the interest rate to______

Name: An increase in aggregate output causes the demand for money to______and the interest rate to______
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An increase in aggregate output leads to an increase in the demand for money as businesses and consumers spend more. This increased demand for money can lead to higher interest rates as the supply of money is relatively fixed in the short term, making money more expensive to borrow.

An Increase in Aggregate Output Causes the Demand for Money