Which of the Following Does Not Occur as a Result

question 56

Multiple Choice

Which of the following does not occur as a result of the Bank of Canada raising the overnight loans rate?

• A)the supply of loanable funds decrease
• B)the long-term real interest rate rises
• C)exports decrease
• D)aggregate demand increases
• E)imports increase

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Definitions:

Tax Rate

The amount of tax a person or company must pay, expressed as a percentage of income.

Optimal Level

The most efficient, effective, or desirable point or degree for a specific outcome or condition.

Financial Distress Costs

Expenses incurred by a company when it faces financial difficulties, including bankruptcy costs and the cost of lost opportunities.