Which of the following are the likely consequences, in the domestic economy of a country, of an increase in interest rates? 1. A rise in demand for capital goods. 2. A fall in demand for consumer goods. 3. A fall in demand for housing. 4. A rise in the exchange rate.
A) 2, 3 and 4
B) 1, 3 and 4
C) 1, 2 and 4
D) 1, 2 and 3
Correct Answer:
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