A Temporary Increase in Government Purchases Does Not Increase the Real

question 9

Multiple Choice

A temporary increase in government purchases does not increase the real interest rate according to the market clearing model because:

• A)the supply of capital services and demand for capital services increase about the same amount.
• B)neither demand for capital services nor supply of capital services shift due to the permanent increase in government purchases.
• C)the demand for capital services is downward sloping.
• D)the supply of capital services is upward sloping.

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Definitions:

Identical Alleles

Identical alleles are two or more alleles of a gene that have the same DNA sequence and thus code for the same trait or characteristic in an organism.

Sister Chromatids

Identical copies of a chromosome connected by a centromere, formed during the S phase of cell division and eventually separated into daughter cells.

Original Chromosome

Refers to the initial form and structure of a chromosome before any genetic alterations, mutations, or replication processes.

Sickle-cell Anemia

A genetic blood disorder characterized by red blood cells that assume a sickle shape, leading to various complications such as pain and anemia.