Using the Keynesian Model,the Effect of a Government-Imposed Ceiling on Interest

question 38

Multiple Choice

Using the Keynesian model,the effect of a government-imposed ceiling on interest rates paid on personal chequing accounts that is lower than the current market interest rate would be to cause ________ in the real interest rate and ________ in output in the short run.

• A)a decrease;a decrease
• B)a decrease;no change
• C)a decrease;an increase
• D)an increase;a decrease

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Definitions:

Confrontation

A direct form of communication where conflicting parties address and discuss their differences, often aiming for resolution or understanding.

Contracts

Written or verbal agreements between two or more parties that outline the terms and conditions of a particular arrangement or transaction.

Agency

The capacity of individuals or groups to act independently and make free choices.

Prosocial Behaviors

Are positive, helpful, and intended to promote social acceptance and friendship.