When Answering This Question,assume Individuals Consider Only the Short-Run Effects

question 44

Multiple Choice

When answering this question,assume individuals consider only the short-run effects of changes in future variables when forming expectations of future output and future interest rates.Suppose policy makers announce a reduction in future government spending.Which of the following will occur as a result of this expected reduction in government spending?

• A)a reduction in the expected future interest rate and no change in expected future output
• B)a reduction in the expected future interest rate and an increase in expected future output
• C)a reduction in the expected future interest rate and an ambiguous effect on expected future output
• D)none of the above

Differentiate between various types of sensory deafness and understand their causes.

Understand the structure and function of tactile receptors in human skin.

Describe the impact of nonfunctional receptors on sensation.

Identify and explain the principle behind the release and impact of neurotransmitters by sensory receptor cells.

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Definitions:

National Income

The total income earned by a country's people and businesses, including wages, rent, interest, and profits.

Minimum Wage

The lowest legal hourly pay rate that employers can pay their workers, which is set by government law.

Price of Soybeans

The current market value at which soybeans can be bought or sold.

Normative Statement

Assertions or opinions that express what ought to be, involving value judgments and cannot be tested or verified.