As the general price level in the country of Norweinshire rose, the average interest rate in the economy increased, thereby lowering aggregate expenditure. This relationship between price level, interest rate, and aggregate expenditure is referred to as the:
a. total price effect.
b. interest rate effect.
c. wealth effect.
d. real-balance effect.
e. income effect.
Question 2
Difficulty in prediction social sciences is the result of analyzing ____ but can be overcome by focusing on ____ groups.
a. experiments; small groups
b. experiments; large groups
c. human behavior; small groups
d. human behavior; large groups
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