Figure 13-1
-Refer to Figure 13-1.Ceteris paribus,a decrease in interest rates would be represented by a movement from
A)AD1 to AD2.
B)AD2 to AD1.
C)point A to point B.
D)point B to point A.

Question

Figure 13-1 
-Refer to Figure 13-1.Ceteris paribus,a decrease in interest rates would be represented by a movement from
A)AD1 to AD2. 
B)AD2 to AD1. 
C)point A to point B. 
D)point B to point A.

Quizplus · Accepted Answer

A decrease in interest rates would make borrowing more attractive, leading to an increase in aggregate demand. This would be represented by a shift of the AD curve to the right, from AD1 to AD2.

Figure 13-1 -Refer to Figure 13-1.Ceteris Paribus,a Decrease in Interest Rates Would