Figure 29-1 -Refer to Figure 29-1. Suppose That the U.S. Government Deficit

question 226

Multiple Choice

Figure 29-1
-Refer to Figure 29-1. Suppose that the U.S. government deficit decreases, causing interest rates in the United States to fall relative to those in the European Union. Assuming all else remains constant, how would this be represented?

• A) Supply would decrease, demand would increase and the economy moves from A to D to C.
• B) Demand would decrease and the economy moves from B to A.
• C) Demand would increase and the economy moves from A to B.
• D) Supply would increase, demand would increase and the economy moves from D to A to B.

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Definitions:

Psychological States

Conditions of the mind associated with feelings, thoughts, and behavior at a particular time.

General Adaptation Syndrome

A model describing the body's short-term and long-term reactions to stress, consisting of three stages: alarm, resistance, and exhaustion.

Resistance Stage

The second stage of the GAS, characterized by prolonged sympathetic activity in an effort to restore lost energy and repair damage. Also called the adaptation stage.

Endocrine Activity

The various functions of the glands in the endocrine system that secrete hormones directly into the bloodstream.