The Spending Allocation Pertains to the Long Run Because

question 120

Multiple Choice

The spending allocation pertains to the long run because

• A)it takes time for the government to adjust spending and taxes.
• B)of the way monetary policy works.
• C)exchange rates adjust very slowly to changing market conditions.
• D)it takes time for consumers and businesses to completely respond to changes in interest rates.
• E)it takes time for market interest rates to adjust to changing conditions.

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Definitions:

Positive Correlation

A relationship between two variables where an increase in one variable is associated with an increase in the other.

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A measurement of academic achievement usually based on grades, standardized test scores, and other criteria.

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A term indicating that the effectiveness, accuracy, or effect of something cannot be verified or confirmed.

Wide Distribution

The extensive spreading of something, such as a product, phenomenon, or piece of information, across a large area or amongst a large number of people.