The Effect of a Increase in Interest Rates by the RBA

question 15

Multiple Choice

The effect of a increase in interest rates by the RBA is likely to be:

• A)the AD curve will shift left.
• B)the AD curve will shift right.
• C)the AS curve will shift right.
• D)the AS curve will shift left.

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Definitions:

Excitatory PSPs

Excitatory postsynaptic potentials are increases in potential that bring a neuron closer to the threshold for firing, facilitating the transmission of signals.

Inhibitory PSPs

Post-synaptic potentials that make a post-synaptic neuron less likely to generate an action potential.

Absolute Refractory Period

A period immediately following the firing of a nerve fiber when it cannot be stimulated for a brief period, regardless of how strong the incoming stimulus may be.

Relative Refractory Period

A period shortly after the firing of a nerve during which the nerve cannot be stimulated to fire again at its maximum rate, but can still respond to a stronger than usual stimulus.