As a Result of an Increased Deficit Associated with Discretionary

question 126

Multiple Choice

As a result of an increased deficit associated with discretionary fiscal policy,

• A)both the interest rate and real output fall
• B)both the interest rate and nominal output rise
• C)the interest rate falls and real output rises
• D)the interest rate rises and real output falls
• E)nominal output rises,real output falls,and the interest rate rises

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Definitions:

Absolute Right

A legal right that is complete and not contingent upon external conditions or restrictions.

Sublet

The act of leasing out a rented property by the original tenant to a third party.

Liable

Legally responsible or obligated to make amends for actions, damages, or debts.

Possession

The state or fact of having ownership or control of something, often referring to tangible property.