A Significant Increase in the Official Interest Rate by the Bank

question 99

Multiple Choice

A significant increase in the official interest rate by the Bank of Canada would be expected to

• A) decrease consumption spending on domestic goods.
• B) decrease investment spending on domestic goods.
• C) decrease net foreign spending on domestic goods.
• D) shift down the expenditure line.
• E) decrease consumption,investment,and net foreign spending,and shift down the expenditure linE.

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