The Income Effect Is the

question 10

Multiple Choice

The income effect is the

• A) increase in the interest rate caused by an increase in Real GDP.
• B) increase in the interest rate due to a higher expected inflation rate.
• C) decrease in the interest rate due to an increase in the supply of loanable funds.
• D) change in national income brought about by a change in interest rates.
• E) rate of change in national income brought about by a change in the supply of money.

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Definitions:

Alter

To change or modify something.

Environments

The environment or settings where a person, animal, or plant exists or functions.

Surrender Displays

Non-verbal signs or behaviors exhibited by an individual to show submission or to indicate stopping conflict or aggression.

Species-Specific

Attributes or behaviors that are characteristic of a particular species.