In a Two-Country World,an Increase in the Real Interest Rate

question 45

Multiple Choice

In a two-country world,an increase in the real interest rate in the domestic economy (relative to the real interest rate in the foreign economy) shifts

• A)the domestic AD curve leftward and the domestic SRAS curve rightward.
• B)the domestic AD curve rightward and the domestic SRAS curve leftward.
• C)both the domestic AD curve and the domestic SRAS curve rightward.
• D)both the domestic AD curve and the domestic SRAS curve leftward.
• E)the domestic AD curve leftward and does not affect the domestic SRAS curve.

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Definitions:

Activity Tolerance

The level of physical activity that a person can perform without experiencing adverse effects.

Contractures

The permanent tightening of muscles, tendons, or skin that restricts normal movement.

Passive Range

The extent of movement at a joint attained with external assistance, without the active contraction of the patient's muscles.

Active Range

The full motion extent that a joint or body part can achieve through voluntary muscle contraction.