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Last updated 11:02 PM on 5/14/26
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8 Terms

1
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What does expansionary monetary policy do to interest rates

Decreases interest rates.

2
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What does contractionary monetary policy do to interest rates?

Increases interest rates.

3
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What happens to interest rates when demand for money increases?

Increases interest rates.

4
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What happens to interest rates when demand for money decreases?

Decreases interest rates.

5
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What does a budget deficit do to interest rates?

Increases interest rates.

6
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What does a budget surplus do to interest rates?

Decreases interest rates.

7
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What happens to interest rates when household savings increase?

Decreases interest rates.

8
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What happens to interest rates when household savings decrease?

Increases interest rates.