If a Country's BP Curve Is Flatter Than Its LM

question 15

Multiple Choice

If a country's BP curve is flatter than its LM curve, then an external financial shock of a rise in interest rates abroad would, under flexible exchange rates, lead to __________ in The home country's national income. If exchange rates were fixed, this external financial shock would __________ in the home country's national income.

• A) a decrease; lead to an increase
• B) a decrease; also lead to a decrease
• C) an increase; also lead to an increase
• D) an increase; lead to a decrease

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Definitions:

Estrogen Replacement

A therapy involving the administration of estrogen to alleviate symptoms associated with menopause or hormonal imbalance.

Female Sex Chromosome

The X chromosome, one of the two types of sex chromosomes, two of which are present in females (XX).

Androgen Insensitivity Syndrome

Androgen Insensitivity Syndrome is a genetic condition where a person is genetically male but has some or all physical traits of a female, due to the body's inability to respond to androgens.

Genetically Male

Refers to individuals who have XY chromosomes typical of the male sex in humans.