The effect of a decrease in interest rates by the RBA is likely to be that the:Group of answer choicesAS curve will shift right.AD curve will shift left.AD curve will shift right.AS curve will shift left.

As the level of interest rates in the economy falls, the demand for money, other things being equal,a.Will fall more or less in line with the change in interest ratesb.Will remain unchangedc.Increased.Could move in either direction depending on other factors

Which assumption is correct?A.An increase in the interest rate will shift the AD curve to the right.B.The impact of the negative supply shock will shift the SRAS upward.C.Changes in the price level can shift the AD curve.D.The short run aggregate supply curve is vertical.

If the interest rate increases, thenGroup of answer choicesthere will be an upward movement along the money demand curve.there will be a downward movement along the money demand curve.the money demand curve will shift to the right.the money demand curve will shift to the left.

Interest rates fall.Instructions: Grab either the AD or AS curve and drag and drop it to a new position to represent the resulting shift in AD or AS.

An increase in the interest rate __________________.a.Shifts the aggregate demand curve to the leftb.Shifts the aggregate demand curve to the rightc.Has no effectd.Moves the economy along the aggregate demand curveClear my choice