If Private Investment Is Relatively Sensitive to Interest Rates, Then

question 15

Multiple Choice

If private investment is relatively sensitive to interest rates, then a fiscal expansion financed by government bond sales will:

• A)have no effect on output.
• B)raise output by a relatively small amount.
• C)raise output by a relatively large amount.
• D)have an ambiguous effect on output.

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Definitions:

Providing Advice

The act of offering recommendations or guidance to others.

Housework Responsibilities

Housework responsibilities refer to tasks and chores associated with the running and maintenance of a household, including but not limited to cleaning, cooking, and laundry, which are traditionally unequally distributed among gender lines.

Less Housework

The phenomenon of spending reduced time or effort on household chores, which can be influenced by various social, economic, or personal factors.

Decision Making

The cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities.