Because Investment, Consumption Expenditure and Net Exports Are Interest-Sensitive Components

question 48

Multiple Choice

Because investment, consumption expenditure and net exports are interest-sensitive components of expenditure, a ________ in the cash rate brings ________ in ________.

• A) fall; an increase; aggregate demand
• B) fall; a decrease; aggregate supply
• C) fall; a decrease; aggregate demand
• D) rise; an increase; aggregate demand
• E) rise; an increase; aggregate supply

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Definitions:

African Americans

Ethnic group in the United States with ancestral ties to Africa, particularly Sub-Saharan Africa.

Emergency Room

A specialized department in a hospital providing immediate treatment for acute illnesses, injuries, or other urgent medical conditions.

Clarification

The act of clarifying a statement or situation to make it more understandable and less confusing.

Eye Contact

The act of looking directly into another person's eyes, which can communicate interest, attention, confidence, or social connection, but meanings can vary significantly across cultures.