In the Keynesian Model,suppose the Fed Wants to Keep Output

question 47

Multiple Choice

In the Keynesian model,suppose the Fed wants to keep output unchanged.If the IS curve shifts to the left,and the Fed acts to keep output unchanged,then

• A)taxes will increase.
• B)the money supply will decline.
• C)the real interest rate will decrease.
• D)taxes will decrease.

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Definitions:

Moscovici

Serge Moscovici is a social psychologist known for his work on social influence and the theory of social representations.

Indirect Impact

Effects or outcomes that are not directly caused by an action or event, but occur as a secondary result.

Asch

Refers to Solomon Asch, a psychologist known for his research on conformity, including famous experiments on group pressure and individual judgment.

Line-Judging Task

A cognitive task used in research to study perceptual or judgmental biases by asking participants to make decisions about visual lines.