An increase in real GDP will cause an increase in interest rates.

Name: An increase in real GDP will cause an increase in interest rates.
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When real GDP increases, it creates a higher demand for credit and borrowing, which in turn increases interest rates. This is because when there is an increase in demand for credit, lenders can charge higher interest rates as the demand for borrowing exceeds the supply of available funds.

An Increase in Real GDP Will Cause an Increase in Interest