increase in aggregate demand.Question 10When the interest rate increases,1. The domestic currency depreciates and net exports increase.II. The return to saving increases and households save a higher fraction of income.III. Firms are able to finance more capital purchases and investment increases.IV. Aggregate demand decreases.#3O I, II and IVO I, II, III and IVO II and IVOI and IV80F3S4F4%5F5No new data to save. Last checked at 11:21pm Sub.< (O6F6&7F7* 008DIIFB(F9

Interest rate is the sum charged, communicated as a percentage of head, by a lender to a borrower…

Answered: O increase in aggregate demand.…

O increase in aggregate demand. Question 10 When the interest rate increases, 1. The domestic currency depreciates and net exports increase

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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