Assume Individuals Consider Only the Long- Run Effects of Changes

question 53

Multiple Choice

Assume individuals consider only the long- run effects of changes in future macro variables when forming expectations of future output and future interest rates. Suppose individuals expect future government spending to increase. Given this information, individuals will expect:

• A) an increase in the expected future interest rate and a constant expected future output.
• B) an increase in the expected future interest rate and an ambiguous effect on expected future output.
• C) an increase in the expected future interest rate and a reduction in expected future output.
• D) an increase in the expected future interest rate and an increase in expected future output.
• E) an increase in the expected future interest rate and no change in expected future output.

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Definitions:

Globally

Pertaining to activities, considerations, or impacts that span across the entire world, not limited to any single geographical area.

Supply Objectives

Goals set by an organization regarding the procurement, management, and delivery of materials and products in a way that supports its business strategy and customer needs.

Organizational Objectives

The specific goals set by a business or institution that guide its operations and strategic direction.

Supply Manager

A professional responsible for overseeing the acquisition of goods and services needed by an organization, ensuring efficiency and cost-effectiveness.