A Fall in the Real Interest Rate

question 61

Multiple Choice

A fall in the real interest rate

• A) results in a movement along the demand for loanable funds curve.
• B) shifts the demand for loanable funds curve rightward.
• C) shifts the demand for loanable funds curve leftward.
• D) has no effect on the demand for loanable funds curve

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Definitions:

Linguistic Determinism

The theory that human thought processes and perceptions are influenced and restricted by language.

Mental Images

Representations in the mind of an object or scene.

Implicit Memory

Retention of learned skills or classically conditioned associations independent of conscious recollection. (Also called nondeclarative memory.)

Creative Intelligence

The ability to adapt to new situations and generate novel ideas or solutions.