Which of the Following Is an Implication of the Classical

question 59

Multiple Choice

Which of the following is an implication of the classical model?

• A) The supply of loanable funds curve is downward sloping.
• B) The inflation rate is constantly rising.
• C) Fiscal policy only changes the amount of consumption,investment and government spending,not the amount of output produced.
• D) Monetary policy can change both the interest rate and real output.
• E) The interest rate can only be changed by monetary policy,not by changes in government spending.

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Definitions:

Action Value

The inherent or assigned worth of actions, often evaluated based on their outcomes, impacts, or alignment with certain principles or goals.

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Discourses

Ways of representing the world through language, emphasizing how power, knowledge, and social practices are intertwined.

Culture Industry

A term used by critical theorists to describe the mass production and commodification of culture under capitalism.