An Increase in the Real Interest Rate Causes

question 4

Multiple Choice

An increase in the real interest rate causes

• A) the IS curve to shift to the right.
• B) the IS curve to shift to the left.
• C) a movement up the IS curve.
• D) a movement down the IS curve.

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Definitions:

Potassium

A soft, silvery-white metallic element, highly reactive and essential for biological organisms, symbolized as K.

Se

Selenium, a nonmetal element with properties that are intermediate between those of metals and nonmetals, used in various industrial applications.

Lewis Dot Structure

A representation of the valence electrons in an atom or molecule, illustrating the bonds between atoms and lone pairs of electrons.

Chlorine

A chemical element with symbol Cl and atomic number 17, known for its high reactivity and use as a disinfectant.