Suppose the Intersection of the IS and LM Curves Is

question 17

Multiple Choice

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

• A)A rise in the price level, shifting the LM curve up and to the left.
• B)A fall in the price level, shifting the LM curve down and to the right.
• C)A rise in the price level, shifting the IS curve up and to the right.
• D)A fall in the price level, shifting the IS curve down and to the left.

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Definitions:

Sole Basis

The single or only reason for a decision, action, or conclusion without consideration of alternative factors.

Thought Processes

The mental operations involved in the perception, understanding, and reasoning which underlie a person's ability to think and make decisions.

Language-like

Pertaining to structures, sequences, or processes that resemble or mimic aspects of linguistic ability, such as syntax and semantics, without being actual language.

Armadillos

Mammals known for their leathery armor shell and the ability to roll into a ball when threatened.