All else constant,if the central bank wants to slow the pace at which the economy is expanding,it should increase interest rates.

Name: All else constant,if the central bank wants to slow the pace at which the economy is expanding,it should increase interest rates.
Brand: Quizplus
Rating: 4.9 (57 reviews)

Question

Quizplus · Accepted Answer

When the central bank increases interest rates, it makes borrowing more expensive, which reduces consumer and investment spending in the economy, ultimately slowing the pace of economic expansion.

All Else Constant,if the Central Bank Wants to Slow the Pace