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    Principles of Economics Study Set 2
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
  5. Question
    A Lower Inflation Rate Leads to a Higher Interest Rate
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A Lower Inflation Rate Leads to a Higher Interest Rate

Question 34

Question 34

True/False

A lower inflation rate leads to a higher interest rate through Reserve Bank policy and the higher interest rate stimulates investment spending.

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