Compared to the Fixed-Price/fixed-Wage Model,in the Keynesian Model with a Flexible

question 10

Multiple Choice

Compared to the fixed-price/fixed-wage model,in the Keynesian model with a flexible price but fixed wage,an increase in the money stock will cause output to rise by

• A)less while the interest rate will fall by more.
• B)less and the interest rate to fall by less.
• C)more but the interest rate to fall by less.
• D)more and the interest rate to fall by more.

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Definitions:

Business Mathematics

The study of mathematics used by commercial enterprises to record and manage business operations.

Student Number-Class Ratio

The proportion representing the average number of students per class in an educational institution.

Social Assistance

Government-provided financial or in-kind help extended to individuals or families in need to secure basic living standards, such as food, shelter, and health care.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment.