-In the Above Figure, If the Economy Is Initially at Point

question 115

Multiple Choice

-In the above figure, if the economy is initially at point D, then if the Fed lowers the federal funds rate

• A) other short-term interest rates fall, net exports increase, and the AD curve shifts rightward.
• B) the exchange rate rises, investment increases, and the SAS curve shifts rightward.
• C) the supply of loanable funds decreases, the real interest rate falls, and the AD curve shifts rightward.
• D) the demand for loanable fund and supply of loanable funds both increase by the same amount so that the AD curve shifts rightward.

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Definitions:

Interneurons

Neurons that transmit signals between sensory and motor neurons, playing critical roles in reflexes and neuronal circuits.

Myelin Sheets

Protective coverings around nerve fibers in the brain, spinal cord, and peripheral nerves, made of myelin, which help in the rapid transmission of electrical signals.

Sensory Information

Data that is perceived by the senses (sight, hearing, smell, taste, touch) and transmitted to the brain for processing.

Axon Hillock

The cone-shaped area of a neuron where the axon originates and where action potentials are initiated.