In the Long Run, You Would Expect Fiscal Expansion to

question 23

Multiple Choice

In the long run, you would expect fiscal expansion to

• A) increase real interest rates but leave real GDP and prices unchanged.
• B) increase prices but leave real interest rates and real GDP unchanged.
• C) reduce real interest rates even as prices and real GDP climb.
• D) increase prices, real GDP, and real interest rates to some degree or other depending on circumstance.
• E) none of the above.

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Definitions:

Reaction

A series of reactions where initial substances, the reactants, are turned into different resulting substances, the products.

PhNHCHO

PhNHCHO, also known as N-phenylformamide, is an organic compound featuring a formamide group attached to a phenyl ring.

Benzene

Aromatic hydrocarbon well-known for its hexagonal ring structure, consisting of six carbon atoms connected by alternate single and double bonds.

Synthesis

The process of combining simpler substances chemically to form a more complex substance.