How would the predicted rise in mortgage rates change aggregate demand? How Will the Rise in Interest
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How would the predicted rise in mortgage rates change aggregate demand?
How Will the Rise in Interest Rate Affect Us? The Bank of Canada has hiked the interest rate for the first time in seven years. The increase will provide greater incentive for Canadians to save more, lead to a rise in mortgage rates, and increase the cost of borrowing to invest.
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A predicted rise in mortgage rates is likely to dampen aggregate demand in the economy for several reasons 1 Reduced Consumption Higher mortgage payme...View the full answer
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