Other Things Equal, a Decrease in the Real Interest Rate

question 93

Multiple Choice

Other things equal, a decrease in the real interest rate will

• A) expand investment and shift the AD curve to the left.
• B) expand investment and shift the AD curve to the right.
• C) reduce investment and shift the AD curve to the left.
• D) reduce investment and shift the AD curve to the right.

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Definitions:

Economic Advancement

The process of increasing wealth, productivity, and standard of living within a society, often through developments in technology, education, and infrastructure.

Public Land

Land owned by the government, available for use or allocation to individuals or organizations.

Market Revolution

The dramatic increase in exchange of goods and services in the 19th century U.S., facilitated by advancements in transportation, commercialization, and industrialization.