In the Classical Model,a Temporary Increase in Government Purchases Causes

question 28

Multiple Choice

In the classical model,a temporary increase in government purchases causes

• A)a decrease in output and the real interest rate.
• B)a decrease in output and an increase in the real interest rate.
• C)an increase in output and a decrease in the real interest rate.
• D)an increase in output and the real interest rate.

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Definitions:

Semantically Related

Pertaining to words or phrases that have a similar meaning or are associated in meaning.

Disabilities

Physical or mental conditions that limit a person's movements, senses, or activities, requiring adaptations for full participation in society.

Plateau

A phase where growth, progress, or development levels off and no significant change is observed for a period of time.

Regressed

A psychological condition involving a return to an earlier stage of development in response to stress or traumatic situations.