In the Keynesian Model in the Short Run,an Increase in the Money

question 70

Multiple Choice

In the Keynesian model in the short run,an increase in the money supply will cause

• A)an increase in output and a decrease in the real interest rate.
• B)a decrease in the real interest rate but no change in output.
• C)an increase in the real interest rate and an increase in output.
• D)no change in either the real interest rate or output.

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Definitions:

Probabilities

Measuring how likely it is for an event to occur, using a numeric scale that falls between 0 and 1.

Normal Probability Distribution

A bell-shaped probability distribution characterized by its mean and standard deviation, describing how random values are spread or dispersed.

Parameters

Quantitative values that define the behavior and characteristics of a model or function.

Classical Definition

The Classical Definition, often referred to in the context of probability, is an approach where the probability of an event is calculated by dividing the number of favorable outcomes by the total number of equally likely outcomes.