What is likely to increase investment and,as a result,aggregate demand?
A)falling real interest rates
B)a decreased demand for investment goods
C)an increase in business taxes
D)rising real interest rates

Question

Quizplus · Accepted Answer

Falling real interest rates make borrowing cheaper, which increases the incentive for businesses to invest in new projects or expand existing ones. This increased investment leads to an increase in aggregate demand as it creates new jobs, income, and spending.

What Is Likely to Increase Investment And,as a Result,aggregate Demand