Everything Else Remaining Unchanged,what Is Likely to Happen to the Equilibrium

question 120

Multiple Choice

Everything else remaining unchanged,what is likely to happen to the equilibrium real interest rate and quantity of credit if the credit demand curve shifts to the right?

• A) Both the equilibrium rate of interest and quantity of credit will increase.
• B) Both the equilibrium rate of interest and quantity of credit will decrease.
• C) The equilibrium rate of interest will increase, and the equilibrium quantity of credit will decrease.
• D) The equilibrium rate of interest will decrease, and the equilibrium quantity of credit will increase.

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Definitions:

Reconquesta

The period in the history of the Iberian Peninsula, spanning several centuries, during which Christian kingdoms gradually reconquered territory from the Muslim Moors who had invaded in the 8th century.

Columbian Exchange

The extensive exchange of flora, fauna, cultural practices, human groups, technological advancements, ailments, and concepts between the Americas and the Old World after Columbus's expeditions.

Tainos

Indigenous people of the Caribbean who were the first Native Americans to encounter Columbus upon his arrival to the New World.

Tenochtitlan

The capital city of the Aztec Empire, located on an island in Lake Texcoco in present-day Mexico City, known for its complex architecture and significant cultural and religious importance.