A decline in interest rates tends to expand the economy by
A) encouraging private investment and decrease in bank lending.
B) appreciating the currency and lowering the profitability criterion for investments.
C) decreasing the cost of capital and reducing net exports.
D) depreciating the currency and raising net exports.
Correct Answer:
Verified
Q102: A rise in the domestic interest rate
Q103: If U.S.interest rates rise while foreign interest
Q104: For a major country with extensive capital
Q105: In an open economy, an increase in
Q106: A currency appreciation
A)reduces aggregate demand and increases
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents