An Increase in the Interest Rate Could Have Been Caused

question 89

Multiple Choice

An increase in the interest rate could have been caused by

• A)a fall in the price level causing the money-demand curve to shift leftward.
• B)a fall in the price level causing the money-demand curve to shift rightward.
• C)a rise in the price level causing the money-demand curve to shift leftward.
• D)a rise in the price level causing the money-demand curve to shift rightward.

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Definitions:

Cautious Judgments

The practice of making decisions or forming opinions based on a careful evaluation of risks and benefits.

Conservative Judgments

Decision-making that tends towards caution, favoring traditional values and the avoidance of risk or change.

Parkinson's Law

The adage that "work expands to fill the time available for its completion," suggesting efficiency decreases as the amount of time allowed increases.

Bay Of Pigs

Refers to the unsuccessful invasion of Cuba in 1961 by a CIA-sponsored paramilitary group, intended to overthrow Fidel Castro’s government.