The New Classical Model Implies That a Shift to a More

question 106

Multiple Choice

The new classical model implies that a shift to a more expansionary fiscal policy will

• A)stimulate aggregate demand and employment.
• B)retard aggregate demand and employment.
• C)increase the real rate of interest.
• D)exert little or no impact on the real interest rate,aggregate demand,and employment.

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Definitions:

Psychoactive Drug

A chemical substance that changes brain function and results in alterations in perception, mood, consciousness, cognition, or behavior.

Anabolic Steroids

Synthetic substances similar to the male sex hormone testosterone, used to promote muscle growth and enhance athletic performance.

Hidden Observer

A concept in hypnosis theory suggesting that a part of the hypnotized person's awareness remains detached and observant, even during deep hypnosis.

Consciousness

A state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, etc.