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:

Fetal Blood

The blood within a fetus, which has unique properties, such as a higher concentration of hemoglobin to efficiently capture oxygen from the placenta.

Maternal

Relating to a mother, especially during pregnancy or shortly after childbirth.

Homeotic Gene

Genes that control the development of anatomical structures in various organisms by regulating the expression of other genes.

Homeodomain Protein

Proteins that contain a homeodomain, a DNA-binding domain, playing a crucial role in the regulation of gene expression and developmental processes.