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In the Keynesian Model in the Long Run,an Increase in Taxes

Question 48
Multiple Choice

In the Keynesian model in the long run,an increase in taxes causes the price level to ________ and the real interest rate to ________. A)fall; rise B)fall; fall C)rise; rise D)rise; fall

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Q 49
Suppose the government decided to tighten monetary policy and decrease government expenditures.In the short run in the Keynesian model,the effect of these policies would be to ________ the real interest rate and ________ the level of output. A)lower; decrease B)lower; have an ambiguous effect on C)have an ambiguous effect on; decrease D)raise; decrease
Q 50
Suppose the government decided to ease monetary policy,then increase taxes.In the short run in the Keynesian model,the effect of these policies would be to ________ the real interest rate and ________ the level of output. A)lower; increase B)lower; decrease C)lower; have an ambiguous effect on D)have an ambiguous effect on; increase
Q 51
The 1980s were characterized by ________ monetary policy and ________ fiscal policy. A)tight; easy B)tight; tight C)easy; easy D)easy; tight
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