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    Principles of Money Banking
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    Exam 23: The Keynesian Framework
  5. Question
    In the "Cost of Capital Channel" of Monetary Policy, a Higher
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In the "Cost of Capital Channel" of Monetary Policy, a Higher

Question 11

Question 11

Multiple Choice

In the "cost of capital channel" of monetary policy, a higher interest rate __________ spending.


A) raises consumption
B) raises investment
C) lowers consumption
D) lowers investment

Correct Answer:

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