In the IS-LM Model, If Investor Sentiments Deteriorate, Then, in Order

question 41

Multiple Choice

In the IS-LM model, if investor sentiments deteriorate, then, in order to prevent a recession, public spending should:

• A)increase.
• B)decline.
• C)remain constant.
• D)fluctuate.

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Definitions:

Rental Income

This is income received from renting out property or equipment. It is often considered passive income and must be reported for tax purposes.

Revenue

The total income generated from normal business operations and before any expenses are deducted.

Asset

Anything of value owned or controlled by a business, entity, or individual that can be used to generate income or settle liabilities.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated for financial reporting and tax purposes.