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

question 62

Multiple Choice

Using the Keynesian model,the effect of a government-imposed ceiling on interest rates paid on personal checking 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:

Subordinate Search

The process undertaken by employees or individuals lower in a hierarchy seeking out information, often to support decision-making or problem-solving efforts.

Perceived Risk

The level of risk that a consumer believes exists when purchasing a product or service, affecting their decision-making process.

Functional Risk

Relates to the possibility that a product or service may not perform as expected, leading to dissatisfaction or potential loss for the consumer.

Practical Consumer

An individual who prioritizes functionality, value, and necessity over luxury or brand prestige when making purchasing decisions.