At a Given Output Level,a Temporary Reduction in Government Purchases

question 39

Multiple Choice

At a given output level,a temporary reduction in government purchases will

• A)increase desired saving, causing the IS curve to shift down and to the left.
• B)increase desired saving, causing the IS curve to shift up and to the right.
• C)decrease desired saving, causing the IS curve to shift down and to the left.
• D)decrease desired saving, causing the IS curve to shift up and to the right.

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Definitions:

Canvas

A durable fabric used as a surface for painting, or metaphorically, a background against which events unfold.

Prefrontal Cortex

A region of the cerebral cortex implicated in a variety of complex behaviors, including planning, and greatly involved in personality development.

Brain

The organ located in the skull responsible for coordinating sensation, intellectual and nervous activity.

Impulses

are sudden, involuntary urges to do something, often without premeditation.