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:

Modeling

A social learning theory concept where individuals learn behaviors, attitudes, or emotions through observing others.

Therapy

A general term for treatments and interventions designed to alleviate emotional distress, psychological disorders, and promote mental health and well-being.

Unconscious Resistances

Psychological defense mechanisms that prevent certain thoughts, feelings, or desires from entering conscious awareness.

Self-efficacy

A person's belief in their ability to succeed in specific situations or accomplish a task.