Anabolic processes tend toward "building up" organs and tissues . These processes produce growth and differentiation of cells and increase in body size, a process that involves synthesis of complex molecules . Examples of anabolic processes include the growth and mineralization of bone and increases in muscle mass. Endocrinologists have traditionally classified hormones as anabolic or catabolic, depending on which part of metabolism they stimulate. The classic anabolic hormones are the anabolic steroids , which stimulate protein synthesis, muscle growth, and insulin .  The balance between anabolism and catabolism is also regulated by circadian rhythms , with processes such as glucose metabolism fluctuating to match an animal's normal periods of activity throughout the day. 
Several studies concluded that diets low in fat (under 15% of total calories) significantly decreased testosterone levels while diets higher in fat (above 30% of total calories) increased serum testosterone levels. Rather than continuing with this discussion I will provide a link to an article which covers the subject quite nicely. To simplify everything that I have said, it seems that one should not lower fat below 15% of daily calories unless they would like to face extreme testosterone deficiencies. Likewise, one should not increase fat to say 40% in order to increase testosterone. Although fat increases testosterone to a degree, it is important to remember that testosterone is only a small piece of the larger puzzle. There are many other hormones and factors involved in building muscle other than just testosterone. By increasing fat to extremely high levels, there will be less “space” for carbohydrates and protein, both of which are very important for aforementioned reasons.