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:

Right Temporal Lobe

A region of the brain involved in processing auditory information and is also associated with the comprehension of language and the formation of memories.

Left Frontal Lobe

The region of the brain located in the left frontal part of the skull responsible for voluntary movement, expressive language, and managing higher level executive functions.

Alzheimer's Disease

A progressive neurodegenerative disorder that causes memory loss, cognitive decline, and ultimately, loss of ability to carry out simple tasks.

Neurological Disorder

Any condition that is caused by a dysfunction in part of the brain or nervous system, leading to physical and/or psychological symptoms.