We would expect higher interest rates on business loans to result in a(n)
A) increase in aggregate demand.
B) increase in aggregate supply.
C) increase in investment spending.
D) decrease in government spending.
E) decrease in aggregate expenditures.

Question

Quizplus · Accepted Answer

Higher interest rates on business loans would deter businesses from borrowing and investing in new projects, resulting in a decrease in aggregate expenditures.

We Would Expect Higher Interest Rates on Business Loans to Result