The Introduction of New Technologies ________ the Real Interest Rate

question 6

Multiple Choice

The introduction of new technologies ________ the real interest rate and ________ the equilibrium quantity of national saving.

• A)increases; increases
• B)increases; decreases
• C)decreases; decreases
• D)decreases; increases

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Definitions:

Inflation

A general increase in prices and fall in the purchasing value of money.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Ethnic Population

A group of people who share a common cultural background, ancestry, or national origin.

Asian Americans

A diverse group of people in the United States with ancestral roots in Asia, often studied in demographic and consumer behavior research.