-Refer to Exhibit 15-2

question 28

Multiple Choice

-Refer to Exhibit 15-2.If the interest rate is i₂ and the relevant money supply curve is S₁,then there is a

• A) shortage of money between points B and A.
• B) surplus of money between points B and A.
• C) surplus of money between points C and D.
• D) shortage of money between points C and D.

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Definitions:

Flynn Effect

The rise in IQ scores over generations in many nations.

IQ Scores

Numerical measurements derived from standardized tests designed to assess human intelligence and cognitive abilities relative to a statistical normal distribution.

Crystallized Intelligence

The ability to use knowledge gained from past experiences, recognizing it as a form of intellectual ability that tends to improve over a person's lifespan.

Fluid Intelligence

Intellectual ability that reflects basic information processing skills, including working memory, processing speed, and the ability to detect relations among stimuli and draw inferences; underlies learning, is not influenced by culture, and reflects brain functioning.