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One of the forces driving our economy today is changes in financial markets. For every percentage change in the interest rate, spending by consumers and
One of the forces driving our economy today is changes in financial markets. For every percentage change in the interest rate, spending by consumers and businesses will move in the opposite direction. If interest rates change from 5% to 4%, will businesses purchase more or less equipment? If businesses change their spending habits by $5B for every 1% change in the interest rate, how much will spending change? $ B
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