The flatter the aggregate expenditure line, the less sensitive real GDP is to changes in the interest rate.
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Q40: Real interest rates and investment are
A)negatively correlated
Q41: If interest rates increase, savings will increase,
Q42: When the rate of inflation rises, the
Q43: A rise in inflation will
A)reduce interest rates
Q44: When inflation is rising, the Fed will
A)lower
Q46: When interest rates increase, the opportunity cost
Q47: Unlike business investment, housing investment declines when
Q48: Consumption expenditures are sensitive to interest rates
Q49: If net exports become less sensitive to
Q50: The positive correlation between real interest rates
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