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If the interest rate rises, a profit-maximizing firm will tend to
Parasympathetic Division
A branch of the autonomic nervous system responsible for 'rest and digest' activities, slowing down the body after stress or exertion.
Intense Arousal
A heightened state of physiological activity and alertness, often associated with emotions such as excitement, anxiety, or fear.
Sympathetic Nervous System
A part of the autonomic nervous system that activates what is often termed the fight or flight response, preparing the body to react to stressful situations.
Increases Respiration
A physiological condition where the rate and depth of breathing rise, often in response to exercise, stress, or another stimuli.
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