The Equilibrium Interest Rate

question 184

Multiple Choice

The equilibrium interest rate

• A) affects both the size of total output and its composition.
• B) falls when the demand for loanable funds increases.
• C) determines the composition of R&D spending but not its total amount.
• D) increases when the expected rate of return on R&D spending falls.

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Definitions:

UV

Ultraviolet, a type of electromagnetic radiation with a wavelength shorter than that of visible light but longer than X-rays, used for sterilization, detecting substances, and in sun tanning.

Debris Flows

Rapid movements of water-laden masses of loose mud, sand, soil, rock, and debris down slopes.

Talus Slopes

Accumulations of broken rock fragments at the base of cliffs, steep slopes, or valley shoulders.

Slopes Fail

Instances where a slope collapses or slides due to gravitational pull and other factors like water saturation or seismic activity.