When Interest Rates Decrease

Multiple Choice

When interest rates decrease,

A) investment will decrease, and consumption and net exports will increase, causing expenditures to increase.
B) government purchases will increase to offset the decline in consumption, investment, and net exports.
C) investment and consumption will increase, and net exports will decrease, causing expenditures to increase.
D) investment will decrease.
E) investment, consumption, and net exports will increase, causing expenditures to increase.