Assume Individuals Consider Only the Short Run Effects of Changes

question 58

Multiple Choice

Assume individuals consider only the short run effects of changes in future macro variables when forming expectations of future output and future interest rates.Suppose current taxes are cut and that individuals expect future taxes to decrease.Given this information,we know with certainty that

• A)current output and the current interest rate will both increase.
• B)current output will increase.
• C)the current interest rate will increase.
• D)the current output effects are ambiguous.

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Definitions:

Racial Identity

An individual's sense of self based on their perceived racial or ethnic group membership.

Indian American Father

A male parent of Indian descent residing in the United States, who may face cultural and integration experiences unique to the Indian-American community.

Chaste

Referring to abstaining from extramarital, or from all, sexual intercourse; also connotes purity.

Sexual Practices

The varied behaviors and activities that individuals engage in related to sexuality and sexual expression.