Use the Following to Answer Questions

question 38

Multiple Choice

Use the following to answer questions :
Exhibit: Keynesian Cross and Loanable Funds

-(Exhibit: Keynesian Cross and Loanable Funds) Both graphs illustrate the inverse relationship between the equilibrium interest rate and the equilibrium level of income.Planned expenditures increase in the Keynesian-cross model as a result of ______,and saving increases in the loanable funds model as a result of ______.

• A) an increase in taxes; an increase in real money balances
• B) a decrease in the interest rate; an increase in income
• C) a decrease in velocity; an increase in government spending
• D) an increase in the interest rate; a decrease in income

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Definitions:

Bright Light

High-intensity, visible light, often used in light therapy to treat various conditions, including seasonal affective disorder and certain sleep disorders.

Melatonin

A hormone produced by the pineal gland that regulates sleep-wake cycles.

Induce Sleepiness

The act of causing or facilitating the onset of a state of sleep, often through natural or pharmacological means.

Light Mask

A device often used in therapy to regulate sleep or treat certain mood disorders by emitting light patterns.