dreamlikealice asked:
The ANSWER is Aggregate Demand shifts RIGHT, which, I thought, means that people plan to spend more .. but why would people plan to spend more if interest rates had dropped? Doesnt Price Level drop is interest rates drop? Thus things are less expensive and people will plan to spend less?
The ANSWER is Aggregate Demand shifts RIGHT, which, I thought, means that people plan to spend more .. but why would people plan to spend more if interest rates had dropped? Doesnt Price Level drop is interest rates drop? Thus things are less expensive and people will plan to spend less?
Can someone explain? Thanks so much!
Training a Puppy
