Which of the Following Is True in the Keynesian Model

question 49

Multiple Choice

Which of the following is true in the Keynesian model?

• A)An easy fiscal policy affects output despite the effect of fiscal policy on the interest rates.
• B)An easy monetary policy is associated with an increase in interest rates.
• C)An easy fiscal policy is associated with a decrease in interest rates.
• D)An easy monetary policy will lead to crowding-out effect.

---

Definitions:

Structural Equation Modelling

A statistical technique used in the social sciences to model relationships between multiple variables and to understand complex causal relationships.

HR Demand

Refers to the quantity and quality of human resources that an organization requires to meet its operational objectives.

Trend Analysis

The practice of collecting information and attempting to spot a pattern, or trend, in the information.

Simple Regression

A statistical method used to model the relationship between a single independent variable and a dependent variable.