An Increase in the Spending Multiplier Causes the IS Curve

question 46

Multiple Choice

An increase in the spending multiplier causes the IS curve to:

• A)become steeper.
• B)become flatter.
• C)shift temporarily to having a positive slope.
• D)shift to the left.

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Definitions:

Task Specialization

The process of dividing work into specific tasks that are assigned to individuals based on their skills or expertise.

Interdependence

The mutual reliance between two or more groups, organisms, systems, or entities where each is dependent on the others for certain needs.

Natural Processes

The organic and inherent procedures and events occurring in the environment and the physical world.

Unfavorable Norms

Social rules that are perceived negatively by society or certain groups, often because they lead to undesired outcomes.