When Interest Rates Fall in a Given Economy,it Causes Firms

question 55

Multiple Choice

When interest rates fall in a given economy,it causes firms to borrow __________ funds used for purchasing capital goods.The result will be a(n) ___________ in the level of capital employed in the economy.In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis) ,this then causes ____________________ which makes the LRAS curve shift ____________ resulting in ______________________.

• A) more; increase; the production function to shift upward; rightward; economic growth
• B) less; decrease; the production function to shift downward; leftward; a shrinking economy
• C) more; increase; a movement up along a given production function; rightward; economic growth
• D) more; increase; a movement down along a given production function; leftward; a shrinking economy

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Definitions:

Chorion

The outermost fetal membrane in mammals, including humans, contributing to the formation of the placenta.

Tissue

Groups of cells in a body that perform a specific function, such as muscle or connective tissue.

Fetal MRI

Applies MRI technology to image the fetus’s body and diagnose malformations.

Ultrasound Imaging

A diagnostic technique that uses ultrasound technology to create visual images of internal body structures, offering insights into the health and status of various organs.