Multiple Choice
A higher real interest rate ________ investment spending and ________ consumption spending.
A) increases; increases
B) increases; decreases
C) decreases; decreases
D) decreases; increases
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q97: In the short-run, if the Federal Reserve
Q98: Jim has the following assets and
Q99: The _ is the interest rate commercial
Q100: In reality, the Fed's information is fairly
Q101: If potential output equals 4,000 and short-run
Q103: The money demand curve will shift to
Q104: The following table shows Jay's estimated
Q105: The following table shows Alex's estimated
Q106: According to the Taylor rule, if inflation
Q107: Bank reserves that exceed the reserve requirements