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

question 71

Multiple Choice

In the long-run ISLM model and with everything else held constant,the long-run effect of a cut in government spending 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:

Human Quality

Attributes or traits characteristic of human beings, often referring to moral, ethical, or personal values defining human nature.

Parrots

Highly intelligent birds known for their vivid colors and ability to mimic sounds, including human speech.

Crabs

Crustaceans with a broad, flat body covered by a hard shell, two stalked eyes, and five pairs of legs, the first pair often modified into pincers.

Handedness

The preference of using one hand over the other for performing tasks; this can be right-handedness, left-handedness, or ambidexterity.