In a Keynesian Model,a Temporary Decrease in Government Purchases Would

question 13

Multiple Choice

In a Keynesian model,a temporary decrease in government purchases would cause output to ________ and the domestic real interest rate to ________.

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

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Definitions:

Standard Deviation

A measure of the dispersion or spread of data points in a data set, indicating how much variation exists from the average.

Standard Deviation

A measure of the dispersion or spread of a set of data points from their mean, indicating the variability within the dataset.

Budget Line

A diagram showing all imaginable combinations of two products that can be bought given a fixed budget at unchanged price points.

Expected Rate

The forecasted or anticipated rate of return on an investment or the future rate of interest on a loan.