In Examining the Impact of Fiscal Policy, It Is Assumed

question 80

Multiple Choice

In examining the impact of fiscal policy, it is assumed that:

• A) consumption, investment, and the interest rate are endogenous variables.
• B) consumption, investment, and the interest rate are exogenous variables.
• C) government purchases, taxes, and interest rates are endogenous variables.
• D) government purchases, taxes, and interest rates are exogenous variables.

---

Definitions:

Save Face

Actions taken to preserve one's reputation or dignity in the face of embarrassing or compromising situations.

Discredited

Lacking credibility or not being accepted as valid or true.

Outcome

The result or effect of an action, situation, or event, which can be anticipated or measured.

Passing

The ability of a person to be regarded as a member of an identity group or category different from their own, especially in contexts of gender, race, social class, etc.