An Increase in the Real Interest

question 35

Multiple Choice

An increase in the real interest

• A) increases savings for both borrowers and lenders.
• B) increases savings for borrowers, but has an uncertain effect on the savings of lenders.
• C) increases savings for lenders, but has an uncertain effect on the savings of borrowers.
• D) has an uncertain effect on the savings of both borrowers and lenders.
• E) reduces savings for both borrowers and lenders.

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Definitions:

Right-Brained

Refers to a theory in which the right hemisphere of the brain is more responsible for creative, intuitive, and holistic thought processes.

Left-Brained

Referring to an outdated theory where an individual is thought to be more analytical and logical, supposedly due to the dominant use of the left hemisphere of the brain.

Hemisphere Specialization

The concept that certain functions are more dominantly handled by one of the two hemispheres of the brain.

Corpus Callosum

A broad band of nerve fibers joining the two hemispheres of the brain.