In the IS-LM Model, a Decrease in Government Purchases Leads

question 12

Multiple Choice

In the IS-LM model, a decrease in government purchases leads to a(n) ______ in planned expenditures, a(n) ______ in total income, a(n) ______ in money demand, and a(n) ______ in the equilibrium interest rate.

• A) decrease; decrease; decrease; decrease
• B) increase; increase; increase; increase
• C) decrease; decrease; increase; increase
• D) increase; increase; decrease; decrease

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Definitions:

Underground Mine

A type of mine where the extraction of resources occurs below the Earth's surface, accessed through tunnels or shafts.

Milling

A mechanical process that involves grinding, cutting, or crushing materials to create finer particles.

Subsurface Oil

Oil deposits located beneath the surface of the Earth, typically extracted through drilling operations.

Overthrust Belt

A region in the earth's crust where large areas of rock have been moved over one another typically due to compressional forces.