The Figure Given Below Depicts the IS-LM-FE Model with Floating

question 22

Multiple Choice

The figure given below depicts the IS-LM-FE model with floating exchange rates. The shift of the IS curve from IS₁ to IS₂ was caused by:

• A)a contractionary monetary policy.
• B)official intervention in the foreign exchange market.
• C)an improvement in current account position.
• D)a worsening of international price competitiveness.

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Definitions:

Exemplification

The act of illustrating or showing by example; often used in teaching and explanation strategies.

Identification

Bolstering self-esteem by forming an imaginary or real alliance with some person or group.

Intimidation

The act of making someone feel frightened or overawed, especially in order to make them do what one wants.

Impression Management

Usually conscious efforts by people to influence how others think of them.