In the Keynesian Model in the Short Run,an Increase in the Money

question 70

Multiple Choice

In the Keynesian model in the short run,an increase in the money supply will cause

• A)an increase in output and a decrease in the real interest rate.
• B)a decrease in the real interest rate but no change in output.
• C)an increase in the real interest rate and an increase in output.
• D)no change in either the real interest rate or output.

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Definitions:

Displacement

A psychological defense mechanism in which a person redirects an emotional or behavioral response from the original source to another target.

Redirected Behavior

A phenomenon in which an individual's thwarted behavior is redirected towards a more accessible target.

Life Spans

The duration of time that an individual, organism, or species lives, from birth to death.

Closed Programs

Structured and predetermined series of operations or procedures that do not allow for user intervention or modification.