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The interest rate effect occurs when

sgy_89

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8 years ago

The interest rate effect occurs when

The interest rate effect occurs when
A) the Federal Reserve increases the money supply, which lowers interest rates and causes consumers to demand more goods and services.
B) a reduction in the price level lowers the demand for money, and the resulting lower interest rate causes businesses and others to purchase more goods and services.
C) an increase in the price level reduces the real value of the public's financial assets and causes them to buy fewer goods and services.
D) All of the above

Textbook

Introduction to Economic Reasoning

Edition: 8^th

Author: Rohlf

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