Higher Interest Rates And, Therefore, a Decrease in Investment Spending

question 117

Multiple Choice

Higher interest rates and, therefore, a decrease in investment spending is most likely to be caused by which policy mix?

• A)deficit reduction and expansionary monetary policy 
• B)larger deficits and contractionary monetary policy 
• C)larger deficits and expansionary monetary policy 
• D)deficit reduction and contractionary monetary policy

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