Which of the following is not a consequence of a decrease in the cash rate target in an economy with unemployment and underused capital?

Question

Quizplus · Accepted Answer

A decrease in the cash rate target typically leads to lower interest rates, which can stimulate economic activity by increasing consumption and investment. This can lead to an increase in real GDP, business investment, and housing investment. However, lower interest rates can also lead to a depreciation of the currency, which can increase net exports, not decrease them.

Which of the Following Is Not a Consequence of a Decrease