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:

Constructive Stress

Acts in a positive way to increase effort, stimulate creativity and encourage diligence in one’s work.

Job Burnout

Physical and mental exhaustion that can be incapacitating personally and with respect to work.

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Stress Management

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