Suppose the Aggregate Demand Curve Is Given by Y =

question 52

Multiple Choice

Suppose the aggregate demand curve is given by Y = 12 - r then, if the nominal interest rate increases by 1 percent ________.

• A) aggregate output is unchanged
• B) aggregate output increases
• C) the nominal interest changes
• D) the real interest rate falls

---

Definitions:

Spacing Effect

The phenomenon whereby learning is facilitated when study sessions are spaced out over time instead of being crammed into one session.

Implicit Memory

A type of memory that enables us to perform tasks without conscious awareness of these previous experiences.

Explicit Memory

A type of long-term memory that involves conscious recollection of previous experiences or information.

Cerebellum

A part of the brain at the back of the skull in vertebrates, which coordinates and regulates muscular activity.