If Consumers Decide to Save a Larger Percentage of Their

question 28

Multiple Choice

If consumers decide to save a larger percentage of their incomes,it will be

• A) harmful in the long run because the price level will rise.
• B) beneficial in the short run because saving will rise.
• C) beneficial in the long run because interest rates will fall.
• D) harmful in the long run because aggregate supply will fall.
• E) harmful in the long run because unemployment will increase.

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Definitions:

Hormones

Chemical messengers produced by the endocrine glands that travel through the bloodstream to target organs or tissues, influencing various bodily functions.

Humoral Immunity

One of the three general categories of immune response, in which invading antigens are presented by macrophages to B-lymphocytes. (“B” stands for bursa, an organ in which such cells are produced in birds. B-lymphocytes derive from the liver and bone marrow in humans.) This causes the B-cells to reproduce—a process reinforced by the lymphokine secretion from the helper T-cells. Some of the activated B-cells remain as memory B-cells. Others go on to be plasma cells, secreting antibodies called immunoglobulins that neutralize antigens in a number of different ways, such as clumping, presenting the antigen to phagocytic cells, or rupturing the antigen.

Macrophages

A type of white blood cell that engulfs and digests cellular debris, foreign substances, microbes, and cancer cells in a process called phagocytosis.

Memory B-Cells

A type of white blood cell involved in the immune response, capable of remembering past infections and pathogens to produce a quicker response upon re-exposure.