In an IS-LM Model, an Increase in Money Supply Will

question 37

Multiple Choice

In an IS-LM model, an increase in money supply will

• A)increase income, the interest rate and investment
• B)increase income but decrease the interest rate and investment
• C)increase income and investment but decrease the interest rate
• D)increase income and consumption but leave the interest rate unchanged
• E)increase the interest rate and investment but leave consumption unchanged

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Definitions:

Fold and Thrust Belts

These are elongated areas of folding and thrust faulting typically associated with convergent plate boundaries, leading to the formation of mountains and ridges.

Convergent Plate Boundaries

Regions where two tectonic plates move towards each other, often resulting in mountain building, earthquakes, and volcanic activity.

Divergent Plate Boundaries

Places on Earth's surface where tectonic plates move away from each other, leading to the formation of new crust as magma rises and solidifies.

Continental Rifts

Large-scale geological features that form when tectonic plates in the Earth's crust move apart, leading to the formation of new ocean basins or rift valleys.