Suppose We Assume That Initially If

question 115

Multiple Choice

Suppose we assume that initially if
Rises 2 percent and the real interest rate falls 2 percent, short-run output:

• A) falls 2 percent.
• B) rises 1 percent.
• C) rises 3 percent.
• D) falls 1 percent.
• E) does not change.

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Definitions:

Algebraic Expression

An expression constructed from integers, variables, and algebraic operations.

Antifreeze

A liquid added to the water in a cooling system to lower its freezing point, commonly used in automobile engines.

Cooling System

A system designed to remove heat from an area or machinery, commonly using a fluid or air to transfer heat away.

Algebraic Expression

An algebraic expression is a mathematical phrase that can contain numbers, variables, and operation symbols, but no equality sign.