Using the IS-LM Analysis, If the LM Curve Is Not

question 31

Multiple Choice

Using the IS-LM analysis, if the LM curve is not horizontal, the multiplier for an increase in government spending is ______ for an increase in government purchases using the Keynesian-cross analysis.

• A) larger than the multiplier
• B) the same as the multiplier
• C) smaller than the multiplier
• D) sometimes larger and sometimes smaller than the multiplier

---

Definitions:

Abbreviation

A shortened form of a word or phrase used to save space or provide clarity.

Square

A four-sided polygon with all sides of equal length and all angles equal to 90 degrees, often used in geometry and construction.

Lever

A simple machine consisting of a rigid bar that pivots around a fixed point, known as the fulcrum, used to amplify force.

Ratchet Wheels

Gears featuring teeth that engage with a pawl or similar device, allowing rotation in one direction while preventing it in the opposite, used in various mechanical devices.