Final answer:
In the short run, a decrease in interest rates in the economy will cause aggregate demand to increase.
Therefore, the correct answer is: option D) aggregate demand to increase
Step-by-step explanation:
Aggregate demand is a measurement of the total amount of demand for all finished goods and services produced in an economy.
It is commonly expressed as the total amount of money exchanged for those goods and services at a specific price level and point in time.
In the short run, a decrease in interest rates in the economy will cause aggregate demand to increase.
Lower interest rates make borrowing cheaper, which encourages consumers and businesses to borrow and spend more, leading to an increase in overall demand in the economy.
This increase in demand can stimulate economic growth and increase production and employment in the short run.