The Order for the Chain of Events for the Keynesian

question 12

Multiple Choice

The order for the chain of events for the Keynesian model is for a change in to lead to a change in__________ , which is then multiplied resulting in___________a change in __________.

• A) business confidence; investment; real GDP
• B) investment; animal spirits; the price level
• C) the Fedʹs intermediate targets; the Fedʹs goals; real GDP
• D) real GDP; income; consumption

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Definitions:

Hyperpolarized

A state in which a cell's membrane potential is more negative than its normal resting potential.

Synapse

A junction between two nerve cells, consisting of a minute gap across which impulses pass by diffusion of a neurotransmitter.

Neurons

Specialized cells within the nervous system that transmit information to other nerve cells, muscle, or gland cells.

Junction

A point where two or more elements meet or connect, especially in the context of biological structures.