Interest Rates in the Economy Have Fallen

question 69

Multiple Choice

Interest rates in the economy have fallen.How will this affect aggregate demand and equilibrium in the short run?

• A)Aggregate demand will rise,the equilibrium price level will rise,and the equilibrium level of GDP will rise.
• B)Aggregate demand will rise,the equilibrium price level will fall,and the equilibrium level of GDP will rise.
• C)Aggregate demand will fall,the equilibrium price level will fall,and the equilibrium level of GDP will fall.
• D)Aggregate demand will fall,the equilibrium price level will rise,and the equilibrium level of GDP will fall.

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Definitions:

Androgens

A group of hormones that play a role in male traits and reproductive activity.

Estradiol

A form of estrogen, a primary female sex hormone, significant for reproductive and sexual functioning as well as bone health.

Y Sex Chromosome

One of the two sex chromosomes, X and Y, that determine genetic sex in mammals; the presence of a Y chromosome generally leads to male development.

Genetic Code

The set of rules by which information encoded in genetic material (DNA or mRNA sequences) is translated into proteins by living cells.