In an IS-LM Model, If Net Exports Is No Longer

question 6

Multiple Choice

In an IS-LM model, if net exports is no longer assumed to be exogenous (that is, NX = NX?) , but instead is assumed to decrease as the level of income increases (that is, NX = NX? - mY, with m > 0) , then

• A)the IS-curve will become steeper and shift to the left
• B)the IS-curve will become flatter and shift to the right
• C)the LM-curve will become steeper and shift to the left
• D)the LM-curve will become flatter and shift to the right
• E)the fiscal policy multiplier will become larger

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Definitions:

Conscientiousness

A personality trait characterized by organization, dependability, efficiency, and a strong sense of duty.

Job Performance

The extent to which an employee fulfills their job duties and achieves the expected levels of productivity, quality, and effectiveness.

Big Five

refers to a theory of personality that identifies five main dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Nomothetic

An approach in psychology that seeks to study and identify general laws and principles that apply to all individuals.