If Real Interest Rates in the Rest of the World

question 171

Multiple Choice

If real interest rates in the rest of the world increase relative to the United States, the expenditure line will

• A)become flatter.
• B)shift up.
• C)shift down.
• D)become steeper.
• E)not be affected.

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Definitions:

°C

A scale and unit of measurement for temperature where 0°C is the freezing point of water and 100°C is its boiling point at 1 atmosphere of pressure.

Atm

A unit of pressure, also known as atmosphere, approximately equal to the earth's atmospheric pressure at sea level.

Temperature

A measure of the average kinetic energy of the particles in a system, signifying how hot or cold the system is.

°C

Degrees Celsius, a unit of temperature on the Celsius scale, where 0°C represents the freezing point of water, and 100°C its boiling point at sea level.