Multiple Choice
The federal government undertakes a large military buildup; the economy is at its potential level of output, all other things equal, the impact on the long-run real interest rate will be to:
A) Increase
B) Decrease
C) Remain constant since output is at its potential level
D) Change at the same rate as inflation
Correct Answer:

Verified
Correct Answer:
Verified
Q46: Output and inflation movements can arise from
Q54: Use the equation of exchange to show
Q67: Consumption can be sensitive to changes in
Q68: The dynamic aggregate demand curve has a
Q70: The self-correcting mechanism to return the economy
Q76: In the U.S., most of the recessions
Q77: Explain why a country that has a
Q87: Explain the changes that would cause the
Q88: If the economy is producing a level
Q97: What would be the impact on the