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

Question

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A reduction in automobile sales due to higher interest rates indicates that monetary policy, which controls interest rates, can have an impact on consumption and aggregate demand. Fiscal policy, on the other hand, involves changes in government spending and taxation and may not directly affect interest rates. Therefore, we can expect monetary policy to be more effective in addressing the issue of reduced automobile sales.

It Is Often Reported by Financial News Reports That Higher