When interest rates in a given economy are reduced

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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

Reference no: EM13985654

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