As the LM Curve Becomes Steeper, an Unexpected Increase in Consumer

question 5

Multiple Choice

As the LM curve becomes steeper, an unexpected increase in consumer confidence:

• A) is more likely to cause stock prices to rise.
• B) is more likely to keep stock prices constant.
• C) will cause a relatively small increase in output and relatively small increase in the interest rate.
• D) will cause a relatively large increase in output and relatively large increase in the interest rate.
• E) is more likely to cause stock prices to fall.

---

Definitions:

Parent Expectations

Parent expectations refer to the hopes, desires, and demands that parents have for their children's behavior, achievements, and overall development.

Middle Childhood

A developmental stage that typically includes children from about 6 to 12 years old, characterized by notable growth in cognitive and social abilities.

National Economy

The system of economic activities and the total wealth produced within a nation, including the production, consumption, and distribution of goods and services.

International Test

An assessment conducted across various countries aimed at evaluating and comparing the capabilities, knowledge, or skills of participants on a global scale.