Hard Why can a policy-rate increase affect aggregate demand with a lag? AHouseholds never respond to interest rates BAll loans reprice at the same instant CPolicy rates affect only the weather DBorrowing, saving, spending, and investment decisions take time to adjust EThe money supply becomes infinite Report a problem with this question What is wrong? The marked correct answer is wrongAn option is wrong or repeatedSpelling or wording mistakeSomething else Details (optional) Send report