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

question 44

Multiple Choice

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

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

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Definitions:

René Descartes

A French philosopher, mathematician, and scientist who is considered one of the founders of modern philosophy, known for "Cogito, ergo sum" ("I think, therefore I am").

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A small endocrine gland in the vertebrate brain, involved in the production of melatonin, which affects sleep patterns.

Cerebrospinal Fluid

A clear, colorless body fluid found in the brain and spinal cord, which acts as a cushion for the brain's cortex, providing basic mechanical and immunological protection.

Epilepsy

A disorder of the nervous system marked by repeated seizures that occur without any specific cause, stemming from unusual activity in the brain.