In the Long-Run ISLM Model and with Everything Else Held

question 24

Multiple Choice

In the long-run ISLM model and with everything else held constant,the long-run effect of an autonomous fall in consumption expenditure is to ________ real output and ________ the interest rate.

• A)increase;increase
• B)increase;not change
• C)not change;increase
• D)not change;decrease

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Definitions:

Trend Projection Forecasting

A statistical technique that uses historical data to predict future outcomes by identifying and analyzing past trends.

Extrapolation

The process of estimating, beyond the original observation range, the value of a variable on the basis of its relationship with another variable.

Predictive Analysis

The process of selecting, exploring, analyzing, and modeling data to create better business outcomes.

Business Outcomes

The results, achievement, or consequences that a company experiences as a direct or indirect effect of its strategy and actions.