The IS/LM/BP Analysis Suggests That an External Real Sector Shock

question 11

Multiple Choice

The IS/LM/BP analysis suggests that an external real sector shock, such as a rise in national income abroad will cause, under fixed exchange rates, a __________ shift in a Home country's BP curve (assuming that short-term financial capital is not perfectly Mobile) , a __________ in the home country's balance of payments, and __________ in The home country's national income.

• A) rightward; surplus; an increase
• B) rightward; deficit; a decrease
• C) rightward; surplus; a decrease
• D) leftward; deficit; a decrease

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Definitions:

Y-Intercept

The point where a line or curve intersects the Y-axis of a graph.

Linear Regression Equation

A mathematical expression that describes a straight-line relationship between two variables, typically one dependent and one independent variable.

Pearson r

A measure of the linear correlation between two variables X and Y, ranging from -1 to 1, where 1 means total positive linear correlation, 0 means no linear correlation, and -1 means total negative linear correlation.

Number of Victimizations

A statistical measure that indicates the count of instances in which individuals or entities have suffered from criminal acts or harm.