An increase in interest rates
A) decreases investment spending on machinery, equipment and factories, but increases consumption spending on durable goods and net exports.
B) decreases investment spending on machinery, equipment and factories, and consumption spending on durable goods, but increases net exports.
C) decreases investment spending on machinery, equipment and factories, consumption spending on durable goods, and net exports.
D) increases investment spending on machinery, equipment and factories, consumption spending on durable goods, and net exports.
E) decreases investment spending on machinery, equipment and factories, but increase net exports and consumption spending.
Correct Answer:
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Q82: An increase in the interest rate should
Q85: In response to already low interest rates
Q86: Describe how the Bank of Canada uses
Q88: Give an example of a monetary policy
Q89: The situation in which short-term interest rates
Q91: A decrease in interest rates can _
Q92: The ability of the Bank of Canada
Q93: Figure 11.9 Q94: Expansionary monetary policy refers to the _ Q95: Figure 11.9 
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