In the Keynesian Model of an Open Economy,a Temporary Decrease

question 44

Multiple Choice

In the Keynesian model of an open economy,a temporary decrease in government purchases would ________ the domestic real interest rate and ________ net desired saving (desired saving less desired investment) in the economy.

• A)lower; increase
• B)lower; decrease
• C)raise; increase
• D)raise; decrease

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Definitions:

Counterconditioning

A behavioral therapy technique where a maladaptive response to a stimulus is replaced with a more adaptive one.

Unwanted Responses

Behavior or reactions that are involuntary, undesirable, or inappropriate in a given context.

Free Association

A psychoanalytic technique in which patients are encouraged to convey any thoughts that come to mind without censorship to uncover unconscious thoughts and feelings.

Unconditional Positive Regard

An attitude of total acceptance and support toward another person, regardless of what they say or do, as conceptualized by psychologist Carl Rogers.