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:

Federal Constitution

The supreme law of the United States, established in 1787, outlining the national government's structure, functions, and powers, and the rights of the citizens.

Right To Own Slaves

This refers to legal entitlements that existed in various societies allowing individuals to own other individuals as property, most notably before the Civil War in the United States.

Economic Trend

The general direction in which an economy is moving, observed through indicators like GDP, unemployment rates, and consumer spending patterns.

South

A term that typically refers to the southeastern and south-central regions of the United States, often characterized by its distinct cultural, historical, and economic traits.