Using the Keynesian Model,the Effect of a Government-Imposed Ceiling on Interest

question 38

Multiple Choice

Using the Keynesian model,the effect of a government-imposed ceiling on interest rates paid on personal chequing accounts that is lower than the current market interest rate would be to cause ________ in the real interest rate and ________ in output in the short run.

• A)a decrease;a decrease
• B)a decrease;no change
• C)a decrease;an increase
• D)an increase;a decrease

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Definitions:

Reasonable Protection

Reasonable protection generally refers to the adequate measures or steps taken to safeguard individuals, property, or information from harm or damage.

Barriers

Obstacles that prevent movement, access, or progress.

Duty of Care

An obligation to adhere to a standard of reasonable care while performing any acts that could foreseeably harm others.

Violent Video Games

Digital games characterized by scenarios that involve players engaging in acts of virtual violence or aggression.