A higher real interest rate _________ private-sector investment spending and _________ consumption spending.
A) increases;increases
B) increases;decreases
C) does not change;does not change
D) decreases;increases
E) decreases;decreases

Question

Quizplus · Accepted Answer

A higher real interest rate increases the cost of borrowing, which tends to decrease private-sector investment spending and consumption spending as both become more expensive.

A Higher Real Interest Rate _________ Private-Sector Investment Spending and _________

A Higher Real Interest Rate _ Private-Sector Investment Spending and _