In the IS-LM Model, Changes in Taxes Initially Affect Planned

question 76

Multiple Choice

In the IS-LM model, changes in taxes initially affect planned expenditures through:

• A) consumption.
• B) investment.
• C) government spending.
• D) the interest rate.

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Definitions:

Loop of Henle

A U-shaped tube in the nephron of the kidney which plays a critical role in conserving water and in the concentration of urine.

Proximal Convoluted Tubule

A portion of the nephron in the kidney where a major amount of ion and water reabsorption from the filtrate occurs, playing a key role in the regulation of pH, electrolyte balance, and blood pressure.

Distal Convoluted Tubule

A portion of the nephron in the kidney involved in the selective reabsorption and secretion, playing a key role in regulating the body's salt and water balance.

ACE Inhibitor

A medication used to treat high blood pressure and heart failure by inhibiting an enzyme involved in the constriction of blood vessels.