Ceteris Paribus, a Decrease in the Demand for Loans

question 26

Multiple Choice

Ceteris paribus, a decrease in the demand for loans

• A) drives the interest rate down.
• B) drives the interest rate up.
• C) might not have any effect on interest rates.
• D) results from an increase in business prospects and a decrease in the level of savings.

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Definitions:

Neurotransmitter

Chemical substances in the nervous system that transmit signals from one neuron to another across synapses.

Agonist

A chemical or drug that binds to receptors in the brain and causes a reaction, often mimicking the action of naturally occurring substances.

Autonomic Division

The part of the nervous system responsible for control of the bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.

Peripheral Nervous System

The part of the nervous system that lies outside the central nervous system, including nerves and ganglia, responsible for transmitting information to and from the brain and spinal cord.