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.

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

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Definitions:

8th Amendment

An amendment to the U.S. Constitution that prohibits the federal government from imposing excessive bail, excessive fines, or cruel and unusual punishment.

Cruel and Unusual Punishment

Punishment that is considered unacceptable due to the suffering, pain, or humiliation it inflicts on the person subjected to it.

Deontological Theory

An ethical theory that suggests actions are morally right or wrong based on adherence to rules or duties, regardless of the outcomes.

Consequences

The outcomes or effects that result from a particular action or set of actions, often used in moral and ethical considerations to evaluate the rightness of actions.