The concern is that after several years of zero interest rates people have got used to low rates. increase budget deficit and require govt to borrow more and cause interest rates to increase, reducing private investment and crowding out private sector how does this affect the aggregate demand curve? This cookie is used to collect user information such as what pages have been viewed on the website for creating profiles. O b. We use cookies on our website to collect relevant data to enhance your visit. If the money demand remains constant, the interest rate would fall from OR to OR 1. Usually, a rapid increase in oil prices can cause a supply shock. When the supply of loans goes up, the real interest rate will fall. 2 2. . Then, the aggregate demand curve would shift to the left. (b=d([55356,56826,55356,56819],[55356,56826,8203,55356,56819]))&&(b=d([55356,57332,56128,56423,56128,56418,56128,56421,56128,56430,56128,56423,56128,56447],[55356,57332,8203,56128,56423,8203,56128,56418,8203,56128,56421,8203,56128,56430,8203,56128,56423,8203,56128,56447]),!b);case"emoji":return b=d([55357,56424,55356,57342,8205,55358,56605,8205,55357,56424,55356,57340],[55357,56424,55356,57342,8203,55358,56605,8203,55357,56424,55356,57340]),!b}return!1}function f(a){var c=b.createElement("script");c.src=a,c.defer=c.type="text/javascript",b.getElementsByTagName("head")[0].appendChild(c)}var g,h,i,j,k=b.createElement("canvas"),l=k.getContext&&k.getContext("2d");for(j=Array("flag","emoji"),c.supports={everything:!0,everythingExceptFlag:!0},i=0;i Power Level Scale Maker,