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Regarding Government Manipulation of the Interest Rate, All of These

Question 136

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Regarding government manipulation of the interest rate, all of these statements are correct, except


A) to address business fluctuations, governments may reduce interest rates to induce people to borrow.
B) such manipulations may give little thought to the effects on resource allocation between present and future.
C) economists agree with the concept of using of interest rates to allocate resources among different time periods.
D) generally, the price system reflects public preference between present and future resource allocation.

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