In the Real Business Cycle Framework, a Technology Shock That

question 127

Multiple Choice

In the real business cycle framework, a technology shock that increases investment demand and the demand for loanable funds leads to a ________ quantity of saving and a ________ real interest rate.

• A) higher; higher
• B) higher; lower
• C) lower; higher
• D) lower; lower

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Definitions:

Far-Red Light

A range of light with wavelengths slightly longer than those of red light, often used in plant growth studies.

Long-Day Plant

A plant that flowers in response to shortening nights; also called short-night plant. Compare with short-day, intermediate-day, and day-neutral plants.

Critical Period

A specific time in an organism's development when it is particularly sensitive to certain environmental stimuli or experiences, which can have long-lasting effects on its future behavior and development.

Short-Day Plant

A plant that flowers in response to lengthening nights; also called long-night plant. Compare with long-day, intermediate-day, and day-neutral plants.