In a Move Down the IS Curve

question 46

Multiple Choice

In a move down the IS curve,

• A)saving rises.
• B)output falls.
• C)the real interest rate rises.
• D)the federal budget deficit rises.

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Definitions:

Social Rate

Often refers to the rate of return on a public investment or project that includes both the private and external benefits to society.

NPV Analysis

A method of calculating the present value of an investment's expected cash flows minus the initial investment cost to assess profitability.

Externalities

The unintended positive or negative consequences of an economic activity on unrelated third parties.

Greenhouse Gas Emissions

The release of gases into the atmosphere that trap heat, leading to global warming and climate change.