In order to ________ , the Bank of Englandʹs rate cut must ________.
A. decrease consumption; increase the long-run interest rate.
B. increase real GDP; decrease the nominal long-run interest rate.
C. decrease real GDP; increase the real long-run interest rate.
D. increase consumption; decrease the real long-run interest rate.
Answer:D
In order to ________ , the Bank of Englandʹs rate cut must ________.
A. decrease consumption; increase the long-run interest rate. B. increase real GDP; decrease the nominal long-run interest rate. C. decrease real GDP; increase the real long-run interest rate. D. increase consumption; decrease the real long-run interest rate.