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

question 80

Multiple Choice

In the long-run ISLM model and with everything else held constant,the long-run effect of an expansionary fiscal policy is to ________ real output and ________ the interest rate.

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

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Definitions:

Hallucinogenic

Substances that cause hallucinations - perceptions of objects, sounds, or sensations that seem real but are not.

Benzodiazepines

A class of psychoactive drugs used to treat conditions such as anxiety, insomnia, and seizures by enhancing the effect of the neurotransmitter GABA in the brain.

Alcohol Dependence

A medical condition characterized by a high tolerance for alcohol, withdrawal symptoms, and an inability to limit consumption.

Substance Use Disorder

A condition characterized by an uncontrolled use of substances despite harmful consequences.