Other things equal, rising interest rates lead to a _____ in investment spending and a _____ in _____ spending.
A) fall; fall; consumer
B) rise; rise; consumer
C) fall; rise; consumer
D) fall; rise; investment
Correct Answer:
Verified
Q102: Use the following to answer questions:
Figure: Money
Q103: Contractionary monetary policy entails _ the money
Q104: A decrease in the supply of money
Q105: In the income-expenditure model, contractionary monetary policy
Q106: A decrease in the supply of money
Q108: A rise in interest rates due to
Q109: In the income-expenditure model, expansionary monetary policy
Q110: The main objective of contractionary monetary policy
Q111: According to the liquidity preference model, if
Q112: Contractionary monetary policy:
A) increases aggregate demand.
B) increases
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