The Economy Is in the Horizontal Portion of the AS Curve,there

question 51

Multiple Choice

The economy is in the horizontal portion of the AS curve,there is no liquidity trap and investment is sensitive to changes in the interest rate.According to the Keynesian transmission mechanism,if the money supply increases the interest rate will __________,investment spending will __________,the AD curve will shift to the __________,and Real GDP will __________.

• A) fall; rise; right; not change
• B) fall; rise; left; rise
• C) rise; rise; right; rise
• D) fall; rise; right; fall
• E) fall; fall; left; fall

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Definitions:

Postsynaptic

Referring to the region of a neuron that receives and responds to neurotransmitters released from another neuron at a synapse.

AMPA Receptors

Ionotropic receptors in the brain that mediate fast synaptic transmission in the central nervous system, crucial for brain functions such as learning and memory.

Nerve Growth Factor

A protein essential for the growth and survival of certain neurons, playing a critical role in the development and maintenance of the nervous system.

Brain Injury

Physical damage to the brain, which can result in impaired mental or physical functioning.