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:

Right of Inspection

The legal right to examine and review a company's books, records, and documents, typically granted to directors, officers, and shareholders.

Nonconforming Goods

Goods that fail to meet the specifications or standards outlined in a contract.

Course of Dealing

A term defining the established behavior and interaction patterns between contracting parties over time, building a context for interpreting their agreements.

Risk of Loss

denotes the possibility that an asset or investment's value will decrease, reflecting the chance of losing on an investment or possession.