If the US Government Increases Its Expenditures (Without Any Change in Taxes)and

question 16

Multiple Choice

If the U.S. government increases its expenditures (without any change in taxes) and at the same time the Federal Reserve Bank increases the money supply, the AD curve would:

• A)shift to the left.
• B)shift to the right.
• C)become flatter.
• D)become steeper.

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Definitions:

Observational Learning

A learning process through watching the behaviors of others and the outcomes of those behaviors.

Modeling

A method used in psychology to learn by observing and imitating others' behaviors, attitudes, or emotional expressions.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired together; an unconditioned stimulus and a conditioned stimulus.

Fear Response

The physiological and psychological reaction to perceived threats, activating the body's fight or flight response.