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:

Sagittal Plane

A vertical plane that divides the body into right and left parts, commonly used in anatomical and medical contexts.

Sagittal Plane

An anatomical plane that divides the body into right and left parts.

Heart

A muscular organ in most animals, which pumps blood through the blood vessels of the circulatory system.

Ribs

Long, curved bones which form the rib cage, providing protection to the thoracic organs and supporting the upper body.