In the IS-MP Framework, an Expansionary Fiscal Policy Resulting from Government

question 45

Multiple Choice

In the IS-MP framework, an expansionary fiscal policy resulting from government purchases, causes aggregate output to ________ and the interest rate to ________, everything else held constant.

• A) increase; increase
• B) increase; decrease
• C) decrease; decrease
• D) decrease; increase

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Definitions:

Personality

A characteristic way of thinking, feeling, and behaving that is unique to each individual and consistent over time.

Fraternal Twins

Siblings born at the same time as a result of two different eggs being fertilized by two different sperm.

Identical Twins

Siblings born from the same pregnancy who share all of their genetic material because they develop from a single fertilized egg that splits.

Genetic Dispositions

Natural tendencies or susceptibilities influenced by genetic factors, affecting an individual's traits or behaviors.