When the Bank of Canada raises the overnight rate, other short-term interest rates which of the following events occur?
Other short-term interest rates

Question

When the Bank of Canada raises the overnight rate, other short-term interest rates which of the following events occur? 
 Other short-term interest rates

Accepted Answer

rise, consumption expenditure, investment and net exports decrease, and aggregate demand decreases.

Answer

fall, but expenditure plans don't change.

Answer

fall, consumption expenditure, investment and net exports increase, and aggregate demand increases.

Answer

rise, consumption expenditure, investment and net exports increase, and aggregate demand increases.

Answer

fall, consumption expenditure, investment and net exports decrease, and aggregate demand decreases.

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When the Bank of Canada raises the overnight rate, other short-term interest rat...

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