An Increase in the Real Interest Rate

question 162

Multiple Choice

An increase in the real interest rate

• A)causes the nongovernment share of GDP line to shift to the right.
• B)causes the nongovernment share of GDP line to shift to the left.
• C)causes a downward movement along the nongovernment share line.
• D)causes an upward movement along the nongovernment share line.
• E)has an indeterminate effect on nongovernment expenditures since some nongovernment expenditures are positively related to the interest rate while others exhibit a negative relationship.

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Definitions:

Coccolithophorids

A group of planktonic algae that produce calcium carbonate plates known as coccoliths, contributing significantly to marine sediments.

Brown Algae

A large group of mostly marine multicellular algae, including many seaweeds, that are typically brown due to the presence of fucoxanthin pigment.

Representative Clade

A taxonomic group representing a branch on the tree of life, including an ancestor and all its descendants.

Supergroup

A high-level taxonomic rank in the classification of organisms that is above the level of kingdom, used to organize the diversity of life.