A Fall in the Real Interest Rate Leads to

question 8

Multiple Choice

A fall in the real interest rate leads to

• A)an increase in the rental rate on a machine.
• B)a decrease in the rental rate on a machine.
• C)no change in the rental rate on a machine.
• D)a fall in the marginal productivity of capital.

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Definitions:

Diol

An organic compound containing two hydroxyl groups attached to different carbon atoms.

Primary Alcohol

An alcohol where the carbon bonded to the OH group is also attached to only one other carbon atom, typically more reactive in oxidation reactions.

Secondary Alcohol

An alcohol with the hydroxyl group attached to a carbon atom that is bonded to two other carbon atoms.

Tertiary Alcohol

Tertiary alcohol is a classification of alcohol in which the hydroxyl group (-OH) is connected to a carbon atom that is in turn connected to three other carbon atoms.