The Saving-Investment Diagram Shows That a Higher Real Interest Rate

question 53

Multiple Choice

The saving-investment diagram shows that a higher real interest rate due to a leftward shift of the saving curve

• A)raises the profitability of investment for firms.
• B)causes the amount of firms' investment to increase.
• C)increases the total amount of saving because of the increase in the real interest rate.
• D)causes the total amounts of saving and investment to fall.

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Definitions:

Ear Canal

The tube that runs from the outer ear to the eardrum, transporting sound waves to the eardrum.

Sensorineural Hearing Loss

Hearing loss that occurs when neural structures associated with the ear are damaged. Neural structures include hearing receptors and the auditory nerve.

Conductive Hearing Loss

A type of hearing loss that occurs when sound waves cannot be conducted through the ear. Most types are temporary.

Tuning Fork

A tool made of metal with two prongs, used primarily to produce a specific tone or pitch for tuning musical instruments, as well as for auditory testing and in healing practices.