In the Short Run in the Keynesian Model,an Increase in the Domestic

question 47

Multiple Choice

In the short run in the Keynesian model,an increase in the domestic money supply would cause domestic output to ________ and the domestic real interest rate to ________.

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

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Definitions:

Economic Questions

Fundamental questions that societies address regarding allocation of resources and distribution of goods and services; typically includes "what to produce," "how to produce," and "for whom to produce."

Particular Goods

Specific items or products that are distinguished by their unique features, functions, or qualities from general or generic goods.

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis.

Cash Flows

The movement of funds in and out of a company or financial entity, crucial for assessing its financial health.