An Adverse Supply Shock to the Economy Would

question 50

Multiple Choice

An adverse supply shock to the economy would

• A)decrease investment and raise the real interest rate whether the shock were temporary or permanent.
• B)decrease investment,but might not raise the real interest rate if the shock were permanent.
• C)decrease investment,but might not raise the real interest rate if the shock were temporary.
• D)decrease investment,but definitely not raise the real interest rate.

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Definitions:

Expressive Behaviors

Actions or gestures that convey emotions, feelings, or attitudes without the use of verbal communication.

Joy/Happiness

A state of well-being and contentment characterized by feelings of pleasure and satisfaction.

Reactive, Difficult Infants

Infants who are particularly likely to react negatively to new situations or stimuli and are generally more challenging to soothe or calm.

Temperamental Traits

Temperamental traits refer to basic aspects of an individual’s personality, such as emotionality or sociability, which are believed to be genetically influenced and present from early life.