As a Result of the Increased Deficit Associated with Discretionary

question 1

Multiple Choice

As a result of the increased deficit associated with discretionary fiscal policy, _____

• A) both the interest rate and real output fall.
• B) both the interest rate and nominal output rise.
• C) the interest rate falls and real output rises.
• D) the interest rate rises and nominal output falls.
• E) the natural rate of unemployment rises and the interest rate falls.

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Definitions:

Prospective Customers

Individuals or organizations likely to become clients or customers of a business in the future.

Real Principal

The actual entity or individual for whom an agent or representative acts, holding the ultimate authority and benefit in transactions or contracts.

Unauthorized Contract

An agreement that lacks the approval or authority from the necessary or legally required parties.

Implied Authority

Authority of an agent that is not explicitly stated but is assumed to be granted in order to perform duties related to a job or position.