In the Short Run in the Keynesian Model,an Increase in the Domestic

question 47

Multiple Choice

In the short run in the Keynesian model,an increase in the domestic money supply would cause domestic output to ________ and the domestic real interest rate to ________.

• A)rise; rise
• B)fall; rise
• C)rise; fall
• D)fall; fall

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Definitions:

Universal Law

A principle or rule that is thought to be applicable everywhere and always, governing conduct or phenomena.

Rational Creatures

Beings capable of reasoning, making informed decisions, and understanding the implications of their actions, often applied in philosophical contexts to distinguish humans from other animals.

Maxim

A brief, concise saying that conveys a universal principle or ethical guideline.

Kantian Theory

A philosophical doctrine founded by Immanuel Kant, emphasizing the importance of morality based on duty and the principle that human beings should treat each other as ends in themselves, not as means to an end.