An Increase in Interest Rates Due to a Decrease in the Money

question 64

Multiple Choice

An increase in interest rates due to a decrease in the money supply will

• A) reduce aggregate demand.
• B) not change aggregate demand.
• C) increase aggregate demand.
• D) decrease aggregate supply in the short run and in the long run.

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Definitions:

Structuralism

A school of thought in psychology that analyzes the basic elements of human thought and perception, seeing the mind as a structure made up of interconnected parts.

Consciousness

The state of being aware of and responsive to one's surroundings; a person's subjective experience of the world and mind.

Behaviourist

A psychologist who studies and interprets behavior as a function of environmental histories of reinforcing consequences.

Gestalt Psychologist

A psychologist specializing in the study of perception and learning, emphasizing the idea that the whole is more than the sum of its parts.