When the central bank decreases administered interest rates, the immediate effect is typically a shift in the aggregate demand curve to the right due to an increase in __________.

When the central bank lowers interest rates, it becomes cheaper for people and businesses to borrow money. This means that consumers are more likely to take out loans to buy things like cars or homes, and businesses are more likely to invest in new projects or expand their operations. As a result, spending in the economy increases, which boosts overall demand for goods and services. For example, if a small business can borrow money at a lower interest rate, it might decide to open a new location, creating jobs and increasing demand in the local market. This increase in spending causes the aggregate demand curve to shift to the right, indicating a growth in economic activity.