An Increase in Real GDP Can Shift

question 44

Multiple Choice

An increase in real GDP can shift

• A)money demand to the right and decrease the equilibrium interest rate.
• B)money demand to the right and increase the equilibrium interest rate.
• C)money demand to the left and decrease the equilibrium interest rate.
• D)money demand to the left and increase the equilibrium interest rate.

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Definitions:

Primed

The cognitive process by which exposure to a stimulus influences response to a later stimulus, making it more likely to occur.

Serial Position Effect

A memory effect where items at the beginning and end of a list are more easily recalled than those in the middle.

Grocery Items

Products sold in a grocery store, including food, beverages, household goods, and other consumables.

State-dependent Memory

The phenomenon where information learned in a particular state of consciousness is more easily recalled when in that same state of consciousness.