Multiple Choice
Which of the following is an effect of an increase in the interest rate?
A) People put more money in their savings accounts.
B) Foreign citizens decide to buy fewer Canadian bonds.
C) Firms decide to purchase new machinery.
D) People decide to increase residential investment.
Correct Answer:

Verified
Correct Answer:
Verified
Q3: Which statement do opponents of active stabilization
Q20: The most important lag for monetary policy
Q41: Which of the following shifts aggregate demand
Q46: Which statement is consistent with the short-run
Q48: If expected inflation is constant and the
Q49: According to the theory of liquidity preference,
Q51: When the Bank of Canada decreases the
Q52: If the interest rate is above a
Q54: Over what period of time is the
Q55: What is the main reason the aggregate-demand