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What is the relationship between interest rates and aggregate spending?

A. when interest rates increase, aggregate spending also increases

B. when interest rates increase, aggregate spending decreases

C. they do not have any relation

D. both the factors are affected favorably by any external factor

E. both the factors are affected adversely by any external factor

1 Answer

3 votes
D both the factors are affected favorably by any external factors
User Hassan Jawed
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