-In the Above Figure, If the Economy Is Initially at Point

question 140

Multiple Choice

-In the above figure, if the economy is initially at point D, then if the Fed lowers the federal funds rate

• A) the supply of loanable funds decreases, the real interest rate falls, and the AD curve shifts rightward.
• B) other short-term interest rates fall, net exports increase, and the AD curve shifts rightward.
• C) the exchange rate rises, investment increases, and the SAS curve shifts rightward.
• D) the demand for loanable fund and supply of loanable funds both increase by the same amount so that the AD curve shifts rightward.

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Definitions:

Will to Live

A fundamental drive or motivation inherent in humans and animals aimed at survival and continuation.

Schopenhauer's Metaphysics

The philosophical inquiry concerning the nature of reality and the fundamental structure of the world as outlined by Arthur Schopenhauer, emphasizing the will as the underlying essence of all things.

Optimistic

Having a hopeful or positive outlook on the future, believing that the best possible outcome will occur.

Kant

Immanuel Kant was a German philosopher who is a central figure in modern philosophy, known for his works on epistemology, ethics, and aesthetics.