The Long-Run Interest Rate Effect of Decreased Government Purchases Is

question 159

Multiple Choice

The long-run interest rate effect of decreased government purchases is that

• A)consumption is lower, and investment is higher.
• B)consumption and net exports are the same, and investment is higher.
• C)investment is higher.
• D)consumption, investment, and net exports are all higher.
• E)consumption and net exports are higher.

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Definitions:

Amylase

An enzyme found in saliva and pancreatic fluid that helps in the digestion of carbohydrates by breaking them down into sugars.

Pancreatitis

Inflammation of the pancreas, which can cause severe abdominal pain and is often associated with excessive alcohol consumption or gallstones.

Cholangiopancreatography

A medical imaging technique used to visualize the bile ducts and the pancreatic duct.

Pancreatic Amylase

An enzyme produced by the pancreas that aids in digesting carbohydrates by breaking down starches into sugars.