Figure 4 ​ ​

question 12

Multiple Choice

Figure 4 ​ ​
Refer to figure 4 above. Figure 4 shows the IS-LM model. Which of the following statements about the figure is NOT true?

• A) The figure shows the economy would be in general equilibrium when the interest rate is i₁ and the level of national income is Y₁.
• B) The figure shows that an expansionary monetary policy will lead to an increase in national income and an increase in interest rates.
• C) The figure shows that an expansionary fiscal policy will lead to an increase in national income and an increase in interest rates.
• D) The figure shows the effect of an increase in autonomous expenditure.

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Definitions:

Cultural Differences

Variations in the beliefs, values, customs, and behaviors that exist among groups of people from different backgrounds or societies.

Personality

The unique set of emotional, thought, and behavioral patterns that define an individual.

Ecological Approach

A perspective or methodological approach that emphasizes the complex interrelations between organisms and their environment.

Cross-cultural Differences

Variations in the norms, values, and practices among different societies or ethnic groups.