Figure 11-1 -Refer to Figure 11-1.Suppose the Fed Takes Action That Shifts

question 109

Multiple Choice

Figure 11-1

-Refer to Figure 11-1.Suppose the Fed takes action that shifts the demand curve from S to S′, as illustrated in Panel (b) .As a result, the interest rate ______ and investment ______.

• A)increases; increases
• B)increases; decreases
• C)decreases; increases
• D)decreases; decreases

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Definitions:

Arterial Blood

Oxygen-rich blood that is pumped from the heart to the rest of the body through arteries.

Intracellular Fluid

The fluid found inside cells, making up about 40% of the total body water in humans.

Plasma Concentration

The amount of a substance present in the plasma portion of blood.

Hypercapnia

An excess of carbon dioxide in the bloodstream, typically caused by inadequate respiration.