Increase in aggregate demand : Higher interest rates :: Decrease in bond prices : ?

When aggregate demand increases, it often leads to higher interest rates because the economy is growing, and lenders want to charge more for loans. Higher interest rates can make borrowing more expensive, which can slow down spending and investment. Similarly, when bond prices decrease, it usually means that interest rates are rising. This happens because when new bonds are issued with higher interest rates, existing bonds with lower rates become less attractive, causing their prices to fall. So, just as higher interest rates are linked to an increase in aggregate demand, lower bond prices are linked to higher interest rates.