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An increase in interest rates A. decreases investment spending on machinery, equipment, and factories, but increases consumption spending on durable...

An increase in interest rates

A. decreases investment spending on machinery, equipment, and factories, but increases consumption spending on durable goods and net exports.

B. decreases investment spending on machinery, equipment, and factories, and consumption spending on durable goods, but increases net exports.

C. increases investment spending on machinery, equipment, and factories, consumption spending on durable goods, and net exports.

D. decreases investment spending on machinery, equipment, and factories, consumption spending on durable goods, and net exports.


The Federal Reserve System's four monetary policy goals are

A. low government budget deficits, low current account deficits, high employment, and a high foreign exchange value of the dollar.

B. price stability, high employment, economic growth, and stability of financial markets and institutions.

C. price stability, low government budget deficits, low current account deficits, and a low rate of bank failures.

D. a low rate of bank failures, high reserve ratios, price stability, and economic growth.

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