In the IS-LM Model When M Remains Constant but P

question 65

Multiple Choice

In the IS-LM model when M remains constant but P rises, 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:

Knowledge Management

The process of creating, sharing, using, and managing the knowledge and information of an organization to enhance its performance.

Nonprogrammed Decision

Nonprogrammed decisions are made in response to situations that are unique, poorly defined, and largely unstructured, requiring a bespoke approach.

Intuitive Style

A decision-making approach based on instincts and feelings rather than systematic analysis.

Thinking Style

The particular way an individual processes information and conceptualizes ideas, which can significantly influence decision-making and problem-solving.