Suppose Investment Is Independent of GDP

question 31

Multiple Choice

Suppose investment is independent of GDP. Which answer describes an IS-LM representation of a second economy in which investment is positively correlated with GDP?

• A) No change in either the IS or the LM curves
• B) A flatter IS curve and an unchanged LM curve
• C) A steeper IS curve and an unchanged LM curve
• D) A flatter LM curve and an unchanged IS curve
• E) A steeper LM curve and an unchanged IS curve

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Definitions:

Larynx

The voice box located in the upper part of the airway responsible for voice production, breathing, and swallowing.

Alveolar Sac

A tiny sac located at the very end of the respiratory tree in the lungs where gas exchange occurs.

Bronchiole

Small airways in the lungs that branch from the bronchi and lead to the alveolar sacs, facilitating the exchange of oxygen and carbon dioxide.

Respiratory System

The bodily system consisting of organs and structures used for breathing, including the lungs, bronchi, trachea, and diaphragm.