In the Keynesian-Cross Model, a Decrease in the Interest Rate

question 83

Multiple Choice

In the Keynesian-cross model, a decrease in the interest rate ______ planned investment spending and ______ the equilibrium level of income.

• A) increases; increases
• B) increases; decreases
• C) decreases; decreases
• D) decreases; increases

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Definitions:

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Stratified Random Sample

A sampling method that divides the population into strata, or subgroups, and selects random samples from each stratum to ensure representation.

Statistic

A numerical measurement describing some characteristic of a sample, used to infer properties of the population from which it was drawn.

Parameter

A quantity that defines certain characteristics of a system or function, often used in mathematical or statistical models.