When Drawn Against the Real Interest Rate,the Output Demand Curve

question 31

Multiple Choice

When drawn against the real interest rate,the output demand curve unambiguously shifts to the right if either or both of the following occur.

• A) an increase in current taxes and an increase in future taxes
• B) an increase in current taxes and a decrease in future taxes
• C) a decrease in current taxes and an increase in future taxes
• D) a decrease in current taxes and a decrease in future taxes
• E) an increase in current taxes and a reduction in interest rates.

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Definitions:

Cognitive

Pertaining to the mental processes involved in acquiring knowledge and understanding through thought, experience, and the senses.

Contextual

Relating to the circumstances surrounding a situation or event which add meaning.

Psychoanalytic

Pertaining to a theory and therapeutic approach that emphasizes the exploration of unconscious desires and conflicts as they manifest in behavior.

Uninvolved

A parenting style characterized by a lack of responsiveness to a child's needs and a general disengagement from their life.