Within the IS-LM Curve Model,if the Government Cut Taxes at the Same

question 53

Multiple Choice

Within the IS-LM curve model,if the government cut taxes at the same time that there was an autonomous increase in investment demand,then

• A)income would rise and the interest rate would fall.
• B)income and the interest rate would rise.
• C)income would rise but the effect on the interest rate is uncertain.
• D)the interest rate would rise but the effect on income is uncertain.
• E)the effects on both income and the interest rate are uncertain.

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Definitions:

Gestation

The period of time between the fertilization of an egg and the birth of an organism, commonly used in reference to pregnancies.

Malnutrition

A condition resulting from an imbalanced diet in which nutrients are either insufficient or excessive, leading to health problems.

Nutrients

Substances obtained from food necessary for growth, metabolism, and overall health maintenance.

Calorie Intake

refers to the total amount of energy, measured in calories, that is consumed through eating and drinking.