Question

"If a country is trying to recover from a recent​ recession, it is unlikely their government officials will decide to​ ________ because it would​ ________."

Answer 1

Answer:

Raise interest rates; Decrease aggregate demand.

Explanation:

Raising interest rates, as the exercise explains, would in turn decrease aggregate demand which would be unfortunate for a country recovering from a recent recession given that interest rates affect expenditures more than they affect savings, provoking the aggregate demand (the total demand for all goods within a given market at a given time) to slope down.