In the Keynesian Model,suppose the Fed Sets a Target for the Real

question 116

Multiple Choice

In the Keynesian model,suppose the Fed sets a target for the real interest rate.If the IS curve shifts down and to the left,and the Fed wants to keep output unchanged in the short run and the price level unchanged in the long run,it will

• A)shift the LR curve up.
• B)not shift the LR curve.
• C)shift the LR curve down.
• D)shift the IS curve up and to the right.

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Definitions:

Cash Cycle

The period between the initial investment in inventory and receiving cash from the sale of goods or services, reflecting a company's efficiency and management of working capital.

Fixed Assets

Long-term tangible assets used in the operation of a business, such as buildings, machinery, and equipment, not easily converted into cash.

Source of Cash

Any activity or operation within a business that generates cash inflow.

Inventory Acquisition

The process of obtaining and adding goods or materials to a company's stock for further sale or use.