In the macroeconomy, higher interest rates tend to reduce GDP because A.higher interest rates discourage government spending because government debt becomes harder to service B. higher interest rates discourage the purchase of stocks and bonds C.higher interest rates generate inflation D. higher interest rates reduce consumption and investment

In the macroeconomy, higher interest rates tend to reduce GDP because A.higher interest rates discourage government spending because government debt becomes harder to service B. higher interest rates discourage the purchase of stocks and bonds C.higher interest rates generate inflation D. higher interest rates reduce consumption and investment

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 1DQ

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