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    Exam 22: The Monetary Policy and Aggregate Demand Curves
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    Higher Interest Rates Lead to Reductions in the Aggregate Output
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Higher Interest Rates Lead to Reductions in the Aggregate Output

Question 31

Question 31

Multiple Choice

Higher interest rates lead to reductions in the aggregate output due to ________.


A) reductions in autonomous consumer expenditure
B) reductions in planned investment expenditure
C) higher expected inflation
D) higher employment

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