Consider an Exogenous Increase in the Real Interest Rate in the Simple

question 35

Multiple Choice

Consider an exogenous increase in the real interest rate in the simple macro model.This will tend to cause ________ in desired consumption and ________ in desired investment.

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

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Definitions:

Pocket Veto

A legislative maneuver where the President can effectively veto a bill by taking no action on it, when Congress is not in session.

Chief Diplomat

A role typically filled by a nation's president or prime minister, involving the responsibility of guiding a country's foreign policy and international relations.

Head of State

The chief public representative of a country, such as a president or monarch, who may also have various official duties but often symbolizes the unity and legitimacy of the state.

Executive Orders

Directives issued by the President of the United States to manage operations of the federal government; they have the force of law but do not require congressional approval.