A Decrease in Wealth Would Cause the IS Curve to

question 81

Multiple Choice

A decrease in wealth would cause the IS curve to

• A)shift up and to the right.
• B)shift down and to the left.
• C)remain unchanged.
• D)shift up and to the right only if people face borrowing constraints.

Recognize the role of encoding specificity and context-dependent memory in recall.

Understand the hierarchy and structure of memory encoding processes (structural, phonemic, and semantic).

Illustrate the significance of attention and rehearsal in the encoding and retention of information.

Understand the calculation and significance of the cost of debt and cost of equity for firms.

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Definitions:

Theory

A theory is a well-substantiated explanation of some aspect of the natural world, based on a body of facts that have been repeatedly confirmed through observation and experiment.

Brain Evolved

The process by which the brain has developed and changed over millions of years through evolutionary pressures.

Years Ago

A non-specific term used to indicate a specific amount of time in the past from the current point.

Individual Variation

Differences in physical, behavioral, or physiological characteristics among members of the same species.