Which of the Following Is NOT an Assumption Belonging to the Long-Run

question 27

Multiple Choice

Which of the following is NOT an assumption belonging to the long-run budget constraint model?

• A) The government has a balanced budget.
• B) Prices are perfectly flexible.
• C) The economy is a price taker, small, and open.
• D) The economy can borrow or lend unlimited amounts at the world real interest rate.

---

Definitions:

Higher-Brain

A concept focusing on the critical functions of the cerebral cortex, especially in discussions about brain death, consciousness, and criteria for determining death.

Personhood

The quality or condition of being considered a person, often discussed in moral, legal, and philosophical contexts, affecting rights and responsibilities.

Rachels

Likely refers to James Rachels, an American philosopher who specialized in ethics and created influential arguments concerning moral objectivity and euthanasia.

Morally Distinct

Having qualities or characteristics that set something apart on ethical or moral grounds.