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In the IS-LM Model When M Remains Constant but P

question 65

Multiple Choice

In the IS-LM model when M remains constant but P rises, in short-run equilibrium, in the usual case the interest rate ______ and output ______.


Definitions:

True Experimental Design

A research design that includes random assignment of participants to conditions and manipulation of an independent variable to determine its effect on a dependent variable.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Dependent Variable

The outcome variable in an experiment or study whose changes are dependent on manipulations made to the independent variable(s).

Type II Error

The error that occurs when a statistical test fails to reject a false null hypothesis—essentially, a false negative.

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