Suppose the aggregate demand curve is given by Y = 12 - r then, if the nominal interest rate increases by 1 percent ________.
A) aggregate output is unchanged
B) aggregate output increases
C) the nominal interest changes
D) the real interest rate falls

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The Answer of Suppose the aggregate demand curve is given by Y = 12 - r then, if the nominal interest rate increases by 1 percent ________.
A) aggregate output is unchanged
B) aggregate output increases
C) the nominal interest changes
D) the real interest rate falls

Suppose the Aggregate Demand Curve Is Given by Y =