For a Given Level of National Income, a Decrease in Private

question 44

Multiple Choice

For a given level of national income, a decrease in private consumption or government purchases will cause the equilibrium interest rate to

• A)increase and the flow of national saving to fall.
• B)increase and the flow of investment to decrease.
• C)decrease and the flow of investment to decrease.
• D)decrease and the flow of investment to increase.
• E)increase and the flow of investment to increase.

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Definitions:

Aerobic Respiration

A metabolic process in cells that uses oxygen to convert glucose or other nutrients into energy (ATP), producing carbon dioxide and water as waste products.

Calcium Channel Blockers

A class of medications that disrupt the movement of calcium through calcium channels, used to treat hypertension, angina, and certain arrhythmias by relaxing blood vessels and reducing heart workload.

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, typically measured in the arteries and considered important for ensuring effective circulation of blood.

Arteries

Blood vessels that carry oxygenated blood away from the heart to the tissues of the body.