An Increase in Autonomous Consumption Leads to an Increase in the Equilibrium

question 61

True/False

An increase in autonomous consumption leads to an increase in the equilibrium interest rate and equilibrium level of output in the IS-LM model.

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Definitions:

Overt Behaviour

Observable actions or responses of an individual, visible and measurable by others.

Sigmund Freud

An Austrian neurologist and the founding father of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Behaviour Modification

A therapy approach that seeks to change undesirable behaviors through the use of reinforcement and punishment.

Self-reward

A process of giving oneself a reward to reinforce and encourage positive behavior or the completion of tasks.