When the Real Interest Rate Falls, There Is

question 198

Multiple Choice

When the real interest rate falls, there is

• A) an increase in the slope of the consumption function.
• B) an upward shift of the consumption function.
• C) a downward shift of the consumption function.
• D) a decrease in the slope of the consumption function.
• E) a movement upward along the consumption function.

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Definitions:

Volume

A measure of the amount of space an object or substance occupies.

Dense

Having a high concentration of mass or substance in a specified volume; commonly used to describe objects or materials that are tightly composed without much space between particles.

Volume

A measure of the amount of space that a substance or object occupies or that is enclosed within a container.

Mass

A measure of the amount of matter contained in an object, reflecting its resistance to acceleration when a force is applied.