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History, 22.08.2019 16:30, sweaversw9602

An increase in investment lowers interest rates increases current consumption expands the productive capacity of the economy leads to inflation

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Business, 02.07.2019 19:10, ErickN7597
One explanation for the negative slope of the aggregate demand curve is the "wealth effect" (aka the "real‑balances" effect). what is this effect? as inflation occurs, the purchasing power of consumers increases as accumulated wealth increases in value. for normal goods, people buy more of a product if their income increases. as inflation occurs, consumers buy fewer goods and services because the value of their accumulated wealth declines. interest rates increase when prices rise as consumers try to borrow larger amounts of money to maintain their consumption. the higher interest rate discourages spending. according to the wealth effect, what happens as the price level falls? consumption and investment spending increase. consumption spending increases. consumption spending decreases and investment spending increases. consumption spending decreases. consumption and investment spending decrease. consumption spending increases and investment spending decreases.
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Business, 01.10.2019 05:00, Bamaboy8804
An increase in investment lowers interest rates increases current consumption expands the productive capacity of the economy leads to inflation
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Business, 10.10.2019 15:00, bobtothemaxthe1st
An increase in investment a. lowers interest rates b. increases current consumption c. expands the productive capacity of the economy d. leads to inflation
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