According to the Classical Model,if the Government Lowers Its Budget

question 44

Multiple Choice

According to the classical model,if the government lowers its budget deficit,which of the following will occur?

• A) The interest rate will rise,and consumption,investment and output will all decrease.
• B) The interest rate will fall,consumption and investment will increase,but output will not change.
• C) The interest rate will rise,and consumption,investment and output will all increase.
• D) The interest rate will fall,and consumption,investment and output will all increase.
• E) The interest rate will fall,consumption will not change,but investment and output will both increase.

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Definitions:

Water Shortage

A situation in which the available water supply is insufficient to meet the needs of the population, often leading to serious environmental and social consequences.

Swimming Pool

A constructed basin filled with water designed for swimming, recreation, or exercise.

Social Distance

The perceived or actual level of emotional, physical, or social separation between individuals or groups.

Personal Space

An area with invisible boundaries that surrounds us.