When the Interest Rate in Canada Increases as a Result

question 382

Multiple Choice

When the interest rate in Canada increases as a result of contractionary monetary policy,investment spending _____ and consumption _____.

• A) increases;increases
• B) increases;decreases
• C) decreases;increases
• D) decreases;decreases

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Definitions:

Initial Investment

The amount of money used to start an investment, often the starting capital for a business or financial venture.

Gain on Sale

The financial profit realized when an asset is sold for more than its original purchase price or book value.

Jointly Controlled Operation

A business activity where two or more parties share control and decision-making responsibilities.