When Interest Rates in a Given Economy Are Reduced,it Causes

question 2

Multiple Choice

When interest rates in a given economy are reduced,it causes firms to employ __________ capital goods.In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis) ,this then causes ____________________ .

• A) more; the production function to shift upward
• B) less; the production function to shift downward
• C) more; a movement up along a given production function
• D) more; a movement down along a given production function

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Definitions:

State Supreme Courts

The highest judicial bodies within the individual states in the United States, which serve as the final appellate courts in state law matters.

Congress

The national legislative body of the United States, composed of two chambers: the Senate and the House of Representatives, responsible for making federal laws.

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The process of appointing judges to the federal judiciary system, usually made by the President and confirmed by the Senate.

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The confirmation process is a series of procedural steps undertaken by the Senate to evaluate and confirm appointments by the President to the federal judiciary, cabinet, and other executive branch positions.