In an IS-LM Model, an Increase in Autonomous Spending

question 2

Multiple Choice

In an IS-LM model, an increase in autonomous spending

• A)is caused by a fall in the interest rate
• B)will cause a fall in the interest rate
• C)will lead to an increase in income and the interest rate
• D)will shift the LM-curve to the right
• E)is caused by a movement along the IS-curve from left to right

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Definitions:

Reasonable Time

A legal standard referring to a time period that is fair and appropriate under the circumstances for performing a legal duty or obligation.

Mortgage

A legal agreement by which a bank, lending institution, etc., lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

All-Expense-Paid Trip

A travel package in which all costs, including transportation, lodging, and meals, are covered.

Financial Institution

An organization that provides financial services, such as banking, loans, or investment advice, to individuals or businesses.