Financial Frictions Affect the ________ Curve by ________ the Real

question 29

Multiple Choice

Financial frictions affect the ________ curve by ________ the real interest rate for investment causing investment and aggregate output to ________.

• A) AD; increasing; decrease
• B) AD; decreasing; increase
• C) AS; increasing; decrease
• D) AS; decreasing; increase

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Definitions:

Creative

Pertaining to the use of imagination or original ideas to create something; inventiveness.

Chronic Disease

Long-lasting medical conditions that are generally progressive and may require ongoing treatment and management.

Body Fat

The portion of the human body composed of fat tissue, which serves as energy storage, insulation, and protection of organs.

Crystallized Intelligence

Those types of intellectual ability that reflect accumulated learning. Vocabulary and general information are examples. Some developmental psychologists think crystallized intelligence increases with age, while fluid intelligence declines.