In Classical IS-LM Analysis,the Effects of a Decline in Desired

question 1

Multiple Choice

In classical IS-LM analysis,the effects of a decline in desired investment include

• A)a decline in output.
• B)an increase in the price level.
• C)a decline in the real interest rate.
• D)an increase in unemployment.

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Definitions:

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects aimed at reducing poverty.

Economic Development Institution

Organizations, either governmental or non-governmental, focused on promoting economic development and growth by providing support, resources, and policies to stimulate economic activities.

Output Per Capita

A measure of productivity per person, typically calculated as total output divided by the population size.

Enrolment Rate

The percentage of individuals who are registered or enrolled in an educational institution relative to the eligible population.