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

question 54

Multiple Choice

When answering this question,assume individuals consider only the medium-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 a reduction in expected future output
• D)a reduction in the expected future interest rate and an ambiguous effect on expected future output

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Definitions:

Inpatient Care

The type of institutionalized care that is required, for example, as an illness progresses and that may be provided in a hospice facility.

Medical Model

A framework that views diseases primarily as biophysical processes which can be clinically diagnosed and treated by healthcare professionals.

Acute-Care Hospital

A hospital that provides short-term treatment for severe injuries or illnesses, and urgent medical conditions.

Labeling Theory

Theory based on the idea that whether other people define or label a person as deviant is a critical determinant in the development of a pattern of deviant behavior.