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:

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The absence of menstruation in a person who should be menstruating.

Bulimic

Characterized by episodes of binge eating followed by purging to prevent weight gain, a symptom of the eating disorder bulimia nervosa.

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Substances that loosen stools and increase bowel movements, used to relieve constipation.