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How does rate of interest affect consumption, investment, government, or net export expenditures, and explain how a change in this factor affects: Consumption, investment, government,
How does rate of interest affect consumption, investment, government, or net export expenditures, and explain how a change in this factor affects:
- Consumption, investment, government, or net export expenditures (Lower consumption?)
- Aggregate Expenditures (high rates decrease expenditures = less consumption?)
- Aggregate Demand(lower interest rate = more consumption and investments?)
- Real GDP(Increase in rates = decrease in GDP?)
- Price Level (Inflation. Increase is price level = increase in rate of interest?)
I have a pretty good idea - I hope I am on the right track and appreciate your help.
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