The IS-LM Model Predicts That a Temporary Adverse Supply Shock

question 20

Multiple Choice

The IS-LM model predicts that a temporary adverse supply shock

• A)reduces output,national saving,and investment,but not the real interest rate.
• B)reduces output,national saving,and the real interest rate,but not investment.
• C)reduces the real interest rate,investment,and output,but not national saving.
• D)reduces output,national saving,investment,and the real interest rate.

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Definitions:

Generalized Anxiety

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