llowing graph shows the aggregate-demand curve for this economy. The central bank's policy of targeting a lower interest rate will and the quantity of output demanded to the cost of borrowing, causing residential and business investment spending to at each price level. e on the graph to show the general impact of the central bank's new interest rate target on aggregate demand.

lowing graph shows the agoregate-demand curve for this economy. The central bank's policy of targeting a lower interest rate will the cost of borrowing, causing residential and business investment spending to and the quantity of output demanded at each price level. an the praph to show the general impact of the central bank's new interest rate tagoet on agoregate demand