In an Economy Where Planned Aggregate Spending Is Given by PAE

question 36

Multiple Choice

In an economy where planned aggregate spending is given by PAE = 5,500 + 0.6Y − 20,000r, the interest rate is currently 5 percent (0.05) . If potential output equals 11,750, the central bank must ________ the interest rate to close the ________ gap.

• A)reduce; expansionary
• B)reduce; recessionary
• C)raise; recessionary
• D)raise; expansionary

Understand the impact of prenatal factors on child development.

Identify different types of child temperament and their implications for development.

Recognize the influence of environmental and genetic factors on child development.

Appreciate the role of attachment in the emotional development of children.

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