Suppose There Is a Decrease in Expected Future Output

question 26

Multiple Choice

Suppose there is a decrease in expected future output. This will cause which of the following to occur?

• A) The IS curve to shift left in the current period.
• B) The IS curve to shift right in the current period.
• C) The LM curve to shift up in the current period.
• D) The LM curve to shift down in the current period.
• E) Both the IS and LM curves to shift left in the current period.

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Definitions:

Observer Influence

The effect that the presence or actions of an observer can have on the behavior of the subject being studied.

Misinterpreted

Misinterpreted refers to the incorrect understanding or interpretation of information, words, or actions.

Behaviorists

Psychologists who emphasize the study of observable behaviors and the processes of learning, often through conditioning, without reference to mental states.

Projective Tests

Psychological assessments that use ambiguous stimuli to elicit responses that reveal aspects of an individual's personality.