In the IS-LM Model When Taxation Increases, in Short-Run Equilibrium

question 13

Multiple Choice

In the IS-LM model when taxation increases, in short-run equilibrium, in the usual case, the interest rate and output .

• A)rises; falls
• B)rises; rises
• C)falls; rises
• D)falls; falls

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Definitions:

Thalamus

A major part of the brain located in the center of the brain, acting as a relay station for sensory information and playing a key role in the regulation of consciousness, sleep, and alertness.

Glucagon-like Peptide-1

A hormone involved in the regulation of blood sugar levels by enhancing the secretion of insulin.

Vomiting

The involuntary, forceful expulsion of stomach contents through the mouth.

Calories

A unit of energy used to measure the amount of energy that food provides to the body.