A Reduction in the Quantity Demanded of Interest-Rate-Sensitive Goods as a Result

question 10

Multiple Choice

A reduction in the quantity demanded of interest-rate-sensitive goods as a result of an increase in the price level,if other factors are held constant,is known as

• A)the interest rate effect.
• B)the real-balance effect.
• C)the open-economy effect.an outward shift of the aggregate demand curve.
• D)the open-money balance effect.

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Definitions:

Sum

The result of adding two or more numbers together.

Even Integers

Whole numbers that are divisible by 2.

Estimate Time

Approximating the duration that a task or activity is expected to take.

Geometric Sequence

A sequence of numbers where each term after the first is found by multiplying the previous one by a fixed, non-zero number called the ratio.