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:

Social Position

Social position, also known as social status, is an individual's rank or role within a society or social group based on factors like wealth, occupation, and education.

Schema

A concept or framework that organizes and interprets information.

Temperament

An individual's innate disposition or behavioral style and typical emotional response.

Verbal Fluency

Refers to one's ability to produce a stream of words fluently and coherently, often tested in cognitive and neuropsychological assessments.