PrepTest 83, Section 3, Question 11
Gabriella: By raising interest rates, the government has induced people to borrow less money and therefore to spend less, thereby slowing the country's economy.
Gabriella: By raising interest rates, the government has induced people to borrow less money and therefore to spend less, thereby slowing the country's economy.
Ivan: I disagree with your analysis. The country's economy is tied to the global economy. Whatever happens to the global economy also happens here, and the global economy has slowed. Therefore, the government's action did not cause the economy's slowdown.
Gabriella: By raising interest rates, the government has induced people to borrow less money and therefore to spend less, thereby slowing the country's economy.
Ivan: I disagree with your analysis. The country's economy is tied to the global economy. Whatever happens to the global economy also happens here, and the global economy has slowed. Therefore, the government's action did not cause the economy's slowdown.
Gabriella: By raising interest rates, the government has induced people to borrow less money and therefore to spend less, thereby slowing the country's economy.
Gabriella and Ivan disagree about whether
the economic slowdown in the country has caused people to spend less
the economy of the country is tied to the economies of other countries
raising interest rates caused a significant decrease in borrowing
raising interest rates caused the country's economy to slow
the global economy has slowed
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