An Increase in the Interest Rate Will Cause

question 26

Multiple Choice

An increase in the interest rate will cause

• A)a reduction in the supply of central bank money.
• B)a reduction in the demand for currency.
• C)a reduction in the demand for reserves.
• D)all of the above
• E) both B and C

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Definitions:

Ethics

A branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct.

Interchangeable

means capable of being used in place of each other with similar function or purpose.

Provincial Law Society

An organization in each Canadian province responsible for regulating the legal profession in the public interest.

Hearing

A proceeding before a court or other decision-making body where evidence is presented and arguments are made to determine an issue.