The Long-Run Effect of a Decrease in the Growth Rate

question 205

Multiple Choice

The long-run effect of a decrease in the growth rate of the quantity of money is a

• A) lower real interest rate.
• B) higher real interest rate.
• C) lower nominal interest rate.
• D) higher nominal interest rate.
• E) higher inflation rate.

---

Definitions:

Connectionist Model

A computational model in cognitive science that represents mental phenomena using networks of artificial neural units, drawing inspiration from the neural structures in the brain.

Lexical Decision Task

A task in which an experimental participant is presented with letter strings and asked to judge, as quickly as possible, whether the strings form words.

Schemata

Frameworks for organizing and representing knowledge that contain roles, variables, and fixed parts.

Prototype View

A theory in cognitive science that suggests people categorize objects and ideas by comparing them to an internal "best example" or prototype of a category.