When Interest Rates in a Given Economy Are Reduced,it Causes

question 2

Multiple Choice

When interest rates in a given economy are reduced,it causes firms to employ __________ capital goods.In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis) ,this then causes ____________________ .

• A) more; the production function to shift upward
• B) less; the production function to shift downward
• C) more; a movement up along a given production function
• D) more; a movement down along a given production function

---

Definitions:

Active Transport Molecules

Substances involved in the movement of ions and other molecular substances across cell membranes against a concentration gradient, requiring energy.

Plasma Membrane

A bi-layer of lipids with embedded proteins that surrounds a cell, controlling the movement of substances in and out of the cell.

Acini Cells

Secretory cells in the pancreas forming the acini, which are small clusters producing digestive enzymes released into the digestive tract.

Alpha Cells

Cells located in the pancreas that produce glucagon, a hormone that raises blood glucose levels.