All Else Being Equal in a Classical Model,a Temporary Decrease

question 32

Multiple Choice

All else being equal in a classical model,a temporary decrease in government expenditures in the United States would cause the Canadian real interest rate to ________ and the Canadian price level to ________.

• A)rise;rise
• B)rise;fall
• C)fall;rise
• D)fall;fall

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Definitions:

Taste

A sense that detects flavors in substances, primarily recognized via taste buds on the tongue.

Chemical Stimulus

A type of stimulus involving chemicals that can initiate a biological response in an organism or cell.

Olfactory

Relating to the sense of smell or the organs of smell.

Facial

Pertaining to the face or a beauty treatment for the face.