According to the Keynesian IS-LM model, what is the effect of the following shock on output, employment, real interest rate, consumption, and investment in the Short Run. A wave of credit-fraud increases the frequency with which people make transactions in cash. Output O A. increases O B. stays unchanged OC. decreases Employment A. increases O B. decreases OC. stays unchanged Real interest rate O A. stays unchanged O B. increases O C. decreases Consumption O A. stays unchanged B. decreases O C. increases Investment O A. decreases O B. increases OC. stays unchanged
According to the Keynesian IS-LM model, what is the effect of the following shock on output, employment, real interest rate, consumption, and investment in the Short Run. A wave of credit-fraud increases the frequency with which people make transactions in cash. Output O A. increases O B. stays unchanged OC. decreases Employment A. increases O B. decreases OC. stays unchanged Real interest rate O A. stays unchanged O B. increases O C. decreases Consumption O A. stays unchanged B. decreases O C. increases Investment O A. decreases O B. increases OC. stays unchanged
Chapter1: Making Economics Decisions
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![According to the Keynesian IS-LM model, what is the effect of the following shock on output, employment, real interest rate, consumption, and investment in the Short Run.
A wave of credit-fraud increases the frequency with which people make transactions in cash.
Output
O A. increases
B. stays unchanged
O C. decreases
Employment
A. increases
O B. decreases
O C. stays unchanged
Real interest rate
O A. stays unchanged
O B. increases
O C. decreases
Consumption
O A. stays unchanged
O B. decreases
O C. increases
Investment
O A. decreases
O B. increases
O C. stays unchanged](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcdca9626-9abf-4fff-aee2-ac5e259be333%2F3edb6e29-6b5e-467d-93ff-6d9358f817c6%2Fvvxh3e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:According to the Keynesian IS-LM model, what is the effect of the following shock on output, employment, real interest rate, consumption, and investment in the Short Run.
A wave of credit-fraud increases the frequency with which people make transactions in cash.
Output
O A. increases
B. stays unchanged
O C. decreases
Employment
A. increases
O B. decreases
O C. stays unchanged
Real interest rate
O A. stays unchanged
O B. increases
O C. decreases
Consumption
O A. stays unchanged
O B. decreases
O C. increases
Investment
O A. decreases
O B. increases
O C. stays unchanged
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