If Banks Become More Willing to Make Loans, the Aggregate

question 20

Multiple Choice

If banks become more willing to make loans, the aggregate demand curve will

• A)shift to the left, and the real interest rate will fall.
• B)shift to the left, and the real interest rate will rise.
• C)shift to the right, and the real interest rate will fall.
• D)shift to the right, and the real interest rate will rise.

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Definitions:

Assumptions

Accepted facts or statements taken as true without proof, often serving as the foundation for further reasoning or argument.

ERP

Event-Related Potential; a measured brain response that is the direct result of a specific sensory, cognitive, or motor event.

Consciousness

A state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, and experiences.

Brain Plasticity

The brain's capacity to change and adapt as a result of experience, including the ability to reorganize itself by forming new neural connections.