During the 1987-88 expansion period interest rates in the United States rose as did the rate of investment in the economy.These facts suggest
A) the simple accelerator effect and the effects of higher interest rates complemented each other to raise output growth.
B) the simple accelerator effect and the effects of lower interest rates complemented each other to lower output growth.
C) the effects of the accelerator were greater than those of increased interest rates.
D) the effects of the accelerator were smaller than those of increased interest rates.
Correct Answer:
Verified
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