The New Classical Model Implies That a Shift to a More

question 77

Multiple Choice

The new classical model implies that a shift to a more expansionary fiscal policy (the substitution of debt financing for taxes) will

• A) stimulate aggregate demand and employment.
• B) retard aggregate demand and employment.
• C) increase the real rate of interest.
• D) exert little or no impact on the real interest rate, aggregate demand, and employment.

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Definitions:

Physicians' Office Laboratories

Labs located within a physician's office where various tests are performed on clinical specimens to obtain information about the health of a patient.

Objectives

The set of magnifying lenses contained in the nosepiece of a compound microscope.

Optical Microscope

An instrument that uses visible light and a system of lenses to magnify images of small subjects.

Eyepiece

The component of a microscope through which the viewer looks to see the magnified image of the sample.