Multiple Choice
Other things equal,when the real interest rate falls,C,I,and NX ________ and the output gap will ________.
A) decrease; decrease
B) decrease; increase
C) increase; increase
D) increase; decrease
Correct Answer:

Verified
Correct Answer:
Verified
Q78: Figure 10.4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt=" Figure
Q79: Figure 10.1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 10.1
Q80: If the Bank of Canada keeps the
Q81: Figure 10.4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt=" Figure
Q82: Explain how an increase in the real
Q84: If the MPC = 0.75,a decrease in
Q85: Contractionary monetary policy causes a _ the
Q86: Assume the long-term real interest rate is
Q87: Assume the economy is in a recession
Q88: Figure 10.3<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 10.3