An Increase in the Interest Rate Directly Affects ______, but Also

question 33

Multiple Choice

An increase in the interest rate directly affects ______, but also has an indirect effect on ______ because of its effect on exchange rates.

• A)planned consumption and investment; government spending
• B)planned consumption and investment; net exports
• C)net exports; planned consumption and investment
• D)net exports; government spending

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Definitions:

Accounting Period

A specific duration of time used by businesses for financial reporting and accounting purposes, such as a month, quarter, or year.

Date

A specific point in time that may refer to a day, month, and year, often used in documentation and scheduling.

Insurance Account

An account used to track payments for insurance policies and the portion of the premium that has been used (expired) or is still in effect (unexpired).

Accounting Period

A specific period of time used for financial reporting, often a quarter or year, during which financial information is recorded and reported.