Suppose Policy Makers Implement an Unexpected Fiscal Expansion

question 36

Multiple Choice

Suppose policy makers implement an unexpected fiscal expansion.Further assume that monetary policy is expected to keep interest rates constant in response to this unexpected fiscal expansion.Given this information,we would expect that

• A)stock prices will rise.
• B)stock prices will remain constant.
• C)this policy will have an ambiguous effect on stock prices.
• D)the effect on stock prices will depend on the slope of the IS curve.

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Definitions:

Empathy

The capacity to understand another person’s emotions and concerns.

Peer Acceptance

Likeability or the degree to which a child is viewed as a worthy social partner by his or her peers.

Prosocial Behavior

Actions that are oriented toward others for the pure sake of helping, without a reward.

Prosocial Cognition

Thought processes aimed at understanding and contributing positively to the welfare of others, demonstrating empathy, moral reasoning, and social awareness.