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Allisa [31]
4 years ago
6

524) Everything else held constant, when the inflation rate is expected to rise, interest rates will ________; this result has b

een termed the ________.
Social Studies
1 answer:
Bad White [126]4 years ago
5 0

The correct answer is rise; Keynes effect

Explanation:  The basis for the traditional aggregate demand curve is given by the so-called Keynes effect (the effect of falling wages and prices on the real money supply, interest and investment) and the Pigou effect (the effect of this deflation on real money balances that increase private wealth and end up expanding spending.

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This question is missing the excerpt with the flashback. I've found the complete question online. It is the following:

Because of the baseball schedule, Stanley’s trial was delayed several months. His parents couldn’t afford a lawyer. “You don’t need a lawyer,” his mother had said. “Just tell the truth.”

Stanley told the truth, but perhaps it would have been better if he had lied a little. He could have said he found the shoes in the street. No one believed they fell from the sky.

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B. He thinks that destiny brought the shoes to him.

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D. He thinks that he should have had a lawyer.

Answer:

Based on the flashback, this is what Stanley feels:

C. He thinks that the truth was too unbelievable.

Explanation:

It was Stanley's mother's idea for him to tell the truth. But now, looking back, he realizes that it may not have been a good idea:

<em>Stanley told the truth, but perhaps it would have been better if he had lied a little. He could have said he found the shoes in the street. </em><em>No one believed they fell from the sky. </em>

<u>The truth was too unbelievable. No one would see any veracity in Stanley telling them the shoes fell from the sky. It sounds like a big lie or, at least, like wild imagination. If Stanley had at least come up with a more believable story - such as finding the shoes in the street -, things might have been different.</u>

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Answer:

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