As a Result of Higher Expected Inflation

question 23

Multiple Choice

As a result of higher expected inflation,

• A)the demand and supply curves for loanable funds both shift to the right and the equilibrium interest rate usually rises.
• B)the demand and supply curves for loanable funds both shift to the left and the equilibrium interest rate usually falls.
• C)the demand curve for loanable funds shifts to the right, the supply curve for loanable funds shifts to the left, and the equilibrium interest rate usually rises.
• D)the demand curve for loanable funds shifts to the left, the supply curve for loanable funds shifts to the right, and the equilibrium interest rate usually rises.

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Definitions:

Corpus Callosum

A broad band of nerve fibers joining the two hemispheres of the brain, facilitating interhemispheric communication.

Cerebral Hemisphere

A cerebral hemisphere refers to one of the two halves of the brain in vertebrates, responsible for controlling movement and sensory functions of the opposite side of the body, and associated with different cognitive processes and functions.

Sign Language

A language that uses manual communication and body language to convey meaning, enabling communication for the deaf and hard of hearing.

Broca's Area

A region in the frontal lobe of the dominant hemisphere of the brain with functions linked to speech production and language processing.