Changes in the Equilibrium Interest Rate Will

question 133

Multiple Choice

Changes in the equilibrium interest rate will

• A)affect both the size of the domestic output and the allocation of capital goods among industries.
• B)affect the size of the domestic output but not the allocation of capital goods among industries.
• C)affect the allocation of capital goods among industries but not the size of the domestic output.
• D)have no perceptible effect on either the size of the domestic output or the allocation of capital goods among industries.

---

Definitions:

Fontanels

Membranous regions found in the skull of infants; permit the skull to move through the birth canal.

Newborn Baby

An infant who is within hours, days, or up to a few weeks from birth.

Bursa

A small fluid-filled sac that reduces friction between bones and tendons or muscles around a joint.

Sutures

Fibrous joints between the bones of the skull that fuse with age, or stitches used to close wounds.