An Increase in Autonomous Consumption Leads to an Increase in the Equilibrium

question 61

True/False

An increase in autonomous consumption leads to an increase in the equilibrium interest rate and equilibrium level of output in the IS-LM model.

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Definitions:

Trochlear; Facial

The trochlear nerve is responsible for eye movement, and the facial nerve controls facial expressions, taste sensations, and some glandular functions.

Viscera

The internal organs in the main cavities of the body, especially those within the abdominal and thoracic cavities.

Vagus Nerve

A cranial nerve that innervates major organs, including the heart, lungs, and digestive tract, playing a critical role in the parasympathetic nervous system.

Facial Nerve

The seventh cranial nerve, responsible for controlling most of the muscles of facial expression and conveying taste sensations from the anterior two-thirds of the tongue.