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

question 7

Multiple Choice

In the long-run ISLM model and with everything else held constant,the long-run effect of a fall in net exports 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:

Lasting Effect

An enduring impact or consequence that remains after the initial cause has disappeared or ceased.

Self-Concept

An individual's perception of themselves, including beliefs about one's own attributes, roles, and abilities.

Bicycle Safety

Guidelines and practices aimed at protecting cyclists, including wearing helmets, using bike lanes, and understanding traffic rules.

Bicycle-Related Fatalities

Deaths resulting from accidents or injuries incurred while cycling.