If, in the IS/LM/BP Diagram in a Situation Where Short-Term

question 1

Multiple Choice

If, in the IS/LM/BP diagram in a situation where short-term capital is imperfectly mobile Internationally and a flexible exchange rate system exists, an incipient balance-of- Payments (official reserve transactions) surplus will cause the BP curve to shift__________ and the IS curve to shift __________.

• A) upward and to the left; downward and to the left
• B) upward and to the left; upward and to the right
• C) downward and to the right; downward and to the left
• D) downward and to the right; upward and to the right

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Definitions:

Virtue-Based

Pertains to ethics and moral philosophy emphasizing the role of character and virtue in moral theory rather than either doing one’s duty or acting in order to bring about good consequences.

Ethical Theory

A field of philosophy focused on organizing, justifying, and advising on principles of ethical and unethical actions.

Moral Obligation

A duty or commitment to act in a way that is considered morally right.

Altruistic Service Behaviors

Acts performed by individuals or leaders aimed at helping or benefiting others without expecting anything in return.