The interest rate thought to have the most important impact on aggregate demand is the
A)short-term interest rate.
B)T-bill rate.
C)rate on 90-day CDs.
D)long-term interest rate.

Question

Quizplus · Accepted Answer

Long-term interest rates are crucial for aggregate demand as they influence investment and consumption decisions, affecting spending on durable goods and business investments.

The Interest Rate Thought to Have the Most Important Impact