In the Keynesian Model in the Long Run,an Increase in Taxes

question 84

Multiple Choice

In the Keynesian model in the long run,an increase in taxes causes the price level to ________ and the real interest rate to ________.

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

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Definitions:

Consequential Damages

Refers to the secondary effects or financial losses that occur as a result of a breach of contract, beyond the immediate scope of the agreement.

Substitute Goods

Products or services that can serve as replacements for one another, satisfying the same consumer need.

Perfect Tender Rule

A legal principle in sales law requiring goods delivered under a contract to exactly meet the terms, quantities, and quality specified by the buyer.

Defective Goods

Products that are not functioning as intended or are unsafe due to manufacturing flaws, design defects, or inadequate instructions.