In the Long Run, an Increase in the Demand for Investment

question 1

Multiple Choice

In the long run, an increase in the demand for investment pushes the real interest rate, encourages saving by households, and leads to a future growth rate of potential output.

• A)down; less; lower
• B)up; more; higher
• C)up; less; lower
• D)down; less; higher
• E)up; more; lower

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Definitions:

Probability Assignment

An academic or educational task involving the calculation or analysis of probabilities concerning certain events or scenarios.

Legitimate

Something that is lawful, justified, and recognized as valid or conforming to established rules and standards.

Joint Frequency Distribution

A statistical representation showing the frequency of combined occurrences of two or more variables.

Contingency Table

A tool used in statistics to analyze and display the frequency distribution of variables, showing the number of observations for each combination of categories.