if-the-federal-reserve-decreases-interest-rates-by-2-what-is-the-likely-effect-o

Question

If the Federal Reserve decreases interest rates by 2%, what is the likely effect on aggregate demand?

Accepted Answer

Aggregate demand will increase.

Answer

Aggregate demand will remain unchanged.

Answer

Aggregate demand will decrease.

Answer

Aggregate demand will fluctuate unpredictably.