A decrease in nominal aggregate output will lead to an increase in the interest rate.

Question

Quizplus · Accepted Answer

The relationship between nominal aggregate output and interest rates is not always consistent. In some cases, a decrease in nominal aggregate output may lead to a decrease in interest rates, as the central bank may lower interest rates in an attempt to stimulate the economy. It is important to consider the specific economic conditions and policies at play when analyzing the relationship between these variables.

A Decrease in Nominal Aggregate Output Will Lead to an Increase