QCEVault

Economic management — Question 21

Original QCE Vault practice · 1 mark

Q21 · Practice questionComplex familiar1 mark

QUESTION 21

A rate rise increases a household’s mortgage interest bill by $180 a month. The household reduces discretionary purchases. This most directly illustrates the

(A)
cash-flow channel.
(B)
capital-gains-tax channel.
(C)
labour-productivity channel.
(D)
government-expenditure channel.
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