In the Real Business Cycle Framework, a Technology Shock That

question 286

Multiple Choice

In the real business cycle framework, a technology shock that increases investment demand and the demand for loanable funds leads to a _ _ level of saving and a _ _ real interest rate.

• A) higher; lower
• B) lower; higher
• C) lower; lower
• D) higher; higher

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Definitions:

Net Profit

The remaining income after all expenses, taxes, and costs have been subtracted from total revenue.

Value Chain

A series of activities by a firm that adds value to its products or services from conception to delivery.

Primary Processes

The core activities that directly contribute to the production of goods or provision of services in an organization, such as manufacturing, assembly, and service delivery.

Value Chain

A series of activities carried out by a company to deliver a valuable product or service to the market.