Assume Individuals Consider Only the Short-Run Effects of Changes in Future

question 70

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.A permanent increase in the money supply,with no other policy change implemented or anticipated,will most likely cause

• A)an increase in the current interest rate.
• B)an increase in future output and an increase in the future interest rate.
• C)an unknown effect on the current interest rate.
• D)all of the above
• E) none of the above

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Definitions:

Altruistic

Behavior of an individual that benefits others at its own expense, often seen in social species as a way to enhance group survival.

Fitness Cost

Represents the negative repercussions on an organism's genetic contribution to future generations that can result from the expression of a particular phenotype.

Parental Behavior

Actions taken by parents to ensure the survival and well-being of their offspring, including feeding, protection, and teaching of necessary skills or behaviors.

Hymenoptera

An order of insects that includes wasps, bees, and ants, characterized by their distinctive two pairs of wings and social or solitary lifestyles.