The Economy Is in the Horizontal Portion of the AS Curve,there

question 51

Multiple Choice

The economy is in the horizontal portion of the AS curve,there is no liquidity trap and investment is sensitive to changes in the interest rate.According to the Keynesian transmission mechanism,if the money supply increases the interest rate will __________,investment spending will __________,the AD curve will shift to the __________,and Real GDP will __________.

• A) fall; rise; right; not change
• B) fall; rise; left; rise
• C) rise; rise; right; rise
• D) fall; rise; right; fall
• E) fall; fall; left; fall

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Definitions:

3C Model

A business model that focuses on three key factors: Company, Customer, and Competitor, to guide strategic development and decision-making.

Coordination

Coordination refers to the process of organizing people or groups so that they work together efficiently and effectively.

Cooperation

A process where individuals, organizations, or countries work together towards common goals or interests.

Resource Dependency

A theory that organizations depend on external resources to function, and their strategies are designed to acquire and maintain these resources.