Which of the Following Statements Is Correct

question 29

Multiple Choice

Which of the following statements is correct?

• A) The long-run real interest rate varies directly with changes in non-interest sensitive components of aggregate demand and inversely with potential output.
• B) The long-run real interest rate varies inversely with changes in non-interest sensitive components of aggregate demand and inversely with potential output.
• C) The long-run real interest rate varies directly with changes in non-interest sensitive components of aggregate demand and directly with potential output.
• D) The long-run real interest rate varies directly with changes in non-interest sensitive components of aggregate demand and does not vary with potential output.

---

Definitions:

Graves' Disease

An autoimmune disorder that results in the overproduction of thyroid hormones, leading to symptoms like anxiety, hand tremor, heat sensitivity, weight loss, and bulging eyes.

Weak Muscles

A condition characterized by the reduced strength in one or more muscles.

Fatigue

A state of extreme tiredness or exhaustion resulting from mental or physical exertion or illness.

Paralysis

The loss of the ability to move (and sometimes to feel anything) in part or most of the body, typically as a result of illness, poison, or injury.