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

question 22

Multiple Choice

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


Definitions:

Financially Based

Decisions, actions, or policies grounded primarily on financial considerations, metrics, or outcomes.

Risk Seeking Propensity

A behavioral trait of preferring or pursuing actions that have potential for higher gains despite the risks involved.

High Autonomy

A condition where individuals or entities operate independently, making their own decisions with minimal supervision or direction.

Entrepreneurial Culture

An organizational culture that fosters innovation, risk-taking, and the proactive pursuit of opportunities, typical of startups and innovative enterprises.

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