The Economy Is in the Horizontal Portion of the AS Curve,there

question 51

Multiple Choice

The economy is in the horizontal portion of the AS curve,there is no liquidity trap and investment is sensitive to changes in the interest rate.According to the Keynesian transmission mechanism,if the money supply increases the interest rate will __________,investment spending will __________,the AD curve will shift to the __________,and Real GDP will __________.

• A) fall; rise; right; not change
• B) fall; rise; left; rise
• C) rise; rise; right; rise
• D) fall; rise; right; fall
• E) fall; fall; left; fall

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Definitions:

Major Organic Product

The primary product formed in the greatest yield during an organic chemical reaction.

Alkyl Halides

Organic compounds containing a halogen atom bonded to an alkyl group, used in various chemical reactions and as intermediates in organic synthesis.

Hot Methanol

Methanol used at an elevated temperature in chemical reactions or extraction processes.

Major Organic Product

The primary chemical compound formed in the largest quantity from an organic reaction.