An increase in the interest rate causes investment to quizlet
14 Apr 2019 Central bank's use monetary, the interest rate, reserve requirements, Although wages are higher the increase in prices causes workers to Here is a Quizlet revision activity covering key terms relating to the economic cycle. When investment is linked positively to expected growth of consumer demand. Animal spirits A rise in the jobless rate caused by a contraction of aggregate demand Zero interest rates and slow growth - Keynes got there before us!