3.1 Despite the European debt crisis, in July 2011, the European Central Bank (ECB) focused on its “day job” of fighting inflation and lifted its benchmark rate by quarter of a point to 1.5 percent. However, in November 2011, the ECB reduced interest rates in response to the sluggish and often faltering growth. In 2015, the ECB president, Mario Draghi, signaled that the bank would undertake a large stimulus package and cut the already negative interest rate as the eurozone struggled with low inflation and a tepid recovery. Assuming other interest rates also increased and then decreased along with the ECB rate, what effects do you think these moves have on investment spending in the economy? Explain your answer. Why do you think the ECB changed the rate? When and why might the ECB decide to start increasing it?