In the ISLM Framework a Contractionary Fiscal Policy Causes Aggregate

question 31

Multiple Choice

In the ISLM framework a contractionary fiscal policy causes aggregate output to ________ and the interest rate to ________,everything else held constant.

• A)increase;increase
• B)increase;decrease
• C)decrease;decrease
• D)decrease;increase

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Definitions:

Statistical Software

Computer programs designed to perform statistical analysis, including computation, visualization, and data management tasks.

Test Statistic

A statistic computed from collected sample data, used to determine the refusal of the null hypothesis in hypothesis testing.

Rejection Region

The set of outcomes that lead to the rejection of the null hypothesis during hypothesis testing.

Confidence Interval

A range of values derived from sample statistics that is likely to contain the value of an unknown population parameter.