If the central bank of a country increases the interest rate, it will:
a. weaken the exchange rate
b. decrease the demand for investment spending.
c. increase the price level.
d. increase the net exports of that country.
b
Economics
You might also like to view...
A tax system in which tax rates fall as incomes rise is
A. Flat. B. Regressive. C. Proportional. D. Progressive.
Economics
We should expect a country that experiences volatile inflation to also have:
A. stable nominal interest rates. B. volatile real interest rates. C. volatile nominal interest rates. D. volatile real interest rates but stable nominal rates.
Economics