Suppose the Intersection of the IS and LM Curves Is

question 81

Multiple Choice

Suppose the intersection of the IS and LM curves is to the left of the FE line.What would most likely eliminate a disequilibrium among the asset,labour,and goods markets?

• A)a rise in the price level,shifting the LM curve up
• B)a fall in the price level,shifting the LM curve down
• C)a rise in the price level,shifting the IS curve up
• D)a fall in the price level,shifting the IS curve down

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Definitions:

Alimony

Financial support paid to a former spouse after a marriage has been terminated. The alimony may be permanent or temporary, rehabilitative.

Common Law Marriage

A marriage that is formed by mutual consent and without a marriage license or ceremony. The couple must be eligible to marry, have a present and continuing agreement to be a couple, live together as a couple, and hold themselves out to the public as a couple. Many states do not recognize common law marriages.

Cohabitate

The act of living together in a shared residence, typically in a romantic or familial relationship, without being married.

Emancipated

The status of a minor who has received legal independence from parental control, often through a court process.