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:

Proposal Process

The sequence of steps or actions taken to formulate, submit, and potentially implement a proposed plan or idea.

Policy Practitioners

Professionals engaged in the practical aspects of developing, advocating for, and implementing policies within governmental or organizational structures.

Initiative

The ability to assess and initiate things independently, often to bring about change or take charge in situations.

Coalition Building

The process of bringing together multiple stakeholders or organizations to form an alliance towards a common goal.