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:

Contagion Theory

A theory suggesting that ideas, attitudes, and emotions can spread through populations as if they were contagious diseases.

Emergent Norm

Newly established standards of behavior that emerge in group settings in response to novel situations or challenges.

Leg Warmers

Clothing accessories worn on the lower legs, originally used by dancers to keep muscles warm and prevent cramping or other injuries.

Short-Lived

Describing an event, phenomenon, or object that exists or lasts for a brief period of time.