In a Move Up the IS Curve

question 5

Multiple Choice

In a move up the IS curve,

• A)investment rises.
• B)output falls.
• C)the real interest rate falls.
• D)saving rises.

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Definitions:

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive," indicating a test's incorrect indication of a significant effect.

Available-For-Sale Securities

Financial assets that are neither classified as held for trading nor held to maturity, and are recorded at fair value with unrealized gains or losses reported in other comprehensive income.

Held-To-Maturity Investments

Financial assets acquired with the intent and ability to be held until a defined maturity date.

Fair Value Method

An accounting approach to measure and report assets and liabilities at estimates of their current fair market prices.