It is often reported by financial news reports that higher interest rates reduce automobile sales.If this is true, we can expect

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Quizplus · Accepted Answer

Higher interest rates are a tool of monetary policy, so if they do indeed reduce automobile sales, this suggests that monetary policy is effective in impacting the economy. Fiscal policy refers to changes in government spending and taxes, which wouldn't necessarily be directly related to changes in interest rates, so it is less relevant in this case.

It Is Often Reported by Financial News Reports That Higher