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According to the Spending Allocation Model, What Would Cause the Real

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According to the spending allocation model, what would cause the real interest rate to increase? According to the monetary policy rule, what causes the real interest rate to increase? Are the two models compatible?


Definitions:

Vision For Action

A theory in cognitive neuroscience which posits that visual processing in the brain is done for the purpose of performing actions, rather than for perception alone.

Subcortical Vision

Vision processing that occurs below the cerebral cortex, involving brain structures responsible for basic visual tasks and reflexes.

Conscious Vision

The aspect of sight that involves awareness of what one sees, depending on brain processes that interpret visual information.

Primary Visual Cortex

The region of the brain located in the occipital lobe that receives, integrates, and processes visual information from the retinas.

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