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Economics · May / June 2017 · Paper 11 · Question 8

2281Households

What is likely to happen when the rate of interest increases?

  1. Aconsumer spending increases
  2. Bfirms buy fewer machines
  3. Cpeople hold more cash
  4. Dsavers earn lower rewards

As printed in the paper

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Correct answer: B. firms buy fewer machines

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