Assume Individuals Consider Only the Short Run Effects of Changes

question 50

Multiple Choice

Assume individuals consider only the short run effects of changes in future macro variables when forming expectations of future output and future interest rates.Suppose individuals expect future taxes to decrease.Given this information,individuals will expect

• A)an increase in the expected future interest rate and no change in expected future output.
• B)an increase in the expected future interest rate and an increase in expected future output.
• C)an increase in the expected future interest rate and a reduction in expected future output.
• D)an increase in the expected future interest rate and an ambiguous effect on expected future output.

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Definitions:

Denver II

Denver II is a screening test for developmental delays in children from birth through six years old.

Developmental Disabilities

Conditions that arise during the developmental period, affecting physical, learning, language, or behavior areas.

Developmental Screening

Assessments used to identify children who may have delays in their developmental milestones and need further evaluation.

Quantitative Changes

Modifications that can be measured and expressed in numerical terms, often used in reference to growth, development, or alterations in entities.