The New Classical Model Implies That the Effect of Government

question 105

Multiple Choice

The new classical model implies that the effect of government increasing expenditures by debt financing

• A)has the same effect as if it was financed by raising current taxes.
• B)is highly expansionary on aggregate demand and the economy.
• C)will result in higher real interest rates.
• D)will result in lower personal savings.

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Definitions:

Language Confusion

Language confusion refers to the inability to distinguish between or comprehend multiple languages simultaneously, often experienced in multilingual environments.

Emotional Problems

Difficulties in managing emotions that can affect an individual's mental health and well-being.

Musical Ability

The capacity to understand, produce, or appreciate music, often characterized by skills in rhythm, melody, and harmony.

Universal Grammar

A theory in linguistics suggesting that the ability to acquire language is innate and programmed genetically.