The IS-MP Model Differs from the IS-LM Model in That

question 17

Multiple Choice

The IS-MP model differs from the IS-LM model in that it is assumed

• A) central banks target inflation and set interest rates to meet such a target.
• B) the money supply is endogenous.
• C) price and wage stickiness do not exist.
• D) governments instruct central banks on the level of the money supply and interest rates.

---

Definitions:

Emotional Circumplex

A model used to describe emotions in a 2D circular array, showing the relationships among different emotions.

Aroused-Uunaroused

Refers to the spectrum of physiological and psychological arousal levels, from highly stimulated to completely relaxed.

Negative-Positive

Refers to transitioning from a negative to a positive state or perspective, often used in various psychological contexts.

Emotional Swings

Rapid and often unpredictable changes in mood, ranging from euphoria to despair.