In the Long Run,an Increase in the Demand for Investment

question 81

Multiple Choice

In the long run,an increase in the demand for investment pushes ________ the real interest rate,encourages ________ saving by households,and leads to a ________ future growth rate of potential output.

• A)down; less; lower
• B)up; less; lower
• C)down; less; higher
• D)up; more; higher
• E)up; more; lower

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Definitions:

Smelted

The process of extracting a metal from its ore by heating and melting.

Carload

A shipping term denoting the minimum quantity of cargo required for a shipper to qualify for a reduced rate.

Hormone-Free

Refers to animals raised without the use of growth hormones, often used in reference to meat or dairy products.

Stress-Free

A state or condition where an individual experiences no or minimal stress, leading to a sense of calm and tranquility.