According to the IS-LM Model, in a Liquidity Trap a Decrease

question 40

Multiple Choice

According to the IS-LM model, in a liquidity trap a decrease in public spending causes the GDP to:

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

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Definitions:

Participate

To take part or become involved in a particular activity, event, or situation.

Enuresis

Repeated urination in clothing or in bed.

Bladder

A hollow muscular organ that stores urine excreted by the kidneys before it is discharged from the body.

Bedwetting

Involuntary urination while asleep after the age when bladder control usually occurs, clinically known as nocturnal enuresis.