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

question 80

Multiple Choice

In the long-run ISLM model and with everything else held constant,the long-run effect of an expansionary fiscal policy is to ________ real output and ________ the interest rate.

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

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Definitions:

Egocentrism

A cognitive behavior where individuals have difficulty seeing situations from perspectives other than their own.

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often accompanied by a dismissive or derogatory attitude towards other cultures.

Self-Definitions

How individuals describe, understand, and perceive themselves, reflecting aspects of their identity and personality.

Groups

Collections of individuals who come together to achieve a common goal or share a common interest, influencing each other's thoughts and behaviors.