The Real-Balance Effect Shows That

question 203

Multiple Choice

The real-balance effect shows that

• A) aggregate demand is upward sloping.
• B) a higher price level leads to higher interest rates.
• C) a lower price level will increase the purchasing power of currency and increase personal consumption.
• D) consumption and the price level are positively correlated.

---

Definitions:

Neurogenesis

The formation of new neurons.

Monkey Brains

Informally refers to the study or examination of the brains of monkeys to understand more about neuroanatomy and cognitive functions.

Corpus Callosum

The broad strip of nerve fibers which serves as a bridge for communication between the two halves of the brain.

Split Brains

A condition resulting from surgery that severs the corpus callosum, leading to disconnection between the two hemispheres of the brain.