Consider an Exogenous Increase in the Real Interest Rate in the Simple

question 35

Multiple Choice

Consider an exogenous increase in the real interest rate in the simple macro model.This will tend to cause ________ in desired consumption and ________ in desired investment.

• A)an increase; an increase
• B)an increase; a decrease
• C)a decrease; a decrease
• D)a decrease; no change
• E)a decrease; an increase

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Definitions:

High Expectations

Holding aspirational standards or beliefs about future outcomes or performances that are significantly above the norm.

Perform Well

Achieving or exceeding the standards of excellence or objectives in a particular task or area of activity.

Performance Expectations

The standards or criteria set by an organization or manager that outline the desired outcomes and behaviors from employees or team members.

Special Treatment

Giving particular attention or privileges to certain individuals or groups, often viewed as unfair or biased.