claudettemartinez claudettemartinez

28-05-2021
Business

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What type of relationship exists between interest rates and aggregate spending?
There is a(n) relationship between interest rates and aggregate spending. When interest rates , aggregate spending decreases.

Respuesta :

09-06-2021

Answer:

mark brainlest

Explanation:

Higher real interest rates reduces aggregate expenditure by increasing the cost of loans while increasing the earnings from savings. Both factors reduce expenditures by reducing consumption and investments, and therefore, aggregate expenditure.

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