In an Open Economy,a Shift Down and to the Left

question 41

Multiple Choice

In an open economy,a shift down and to the left of the IS curve could have been caused by

• A)a decline in the foreign real interest rate.
• B)an increase in the demand for domestic goods relative to foreign goods.
• C)an increase in foreign output.
• D)a decline in domestic output.

---

Definitions:

Hydraulic Theory

In archaeology, the theory that explains civilization's emergence as the result of the construction of elaborate irrigation systems, the functioning of which required full-time managers whose control blossomed into the first governing body and elite social class; also known as irrigation theory.

Ecological

Pertaining to the relationships between organisms and their environment.

Ani

In some beliefs, it refers to the soul or spirit of a deceased person or the inherent essence of an individual.

Monumental Architecture

Refers to large and often elaborate structures built to commemorate significant events, persons, or serve as public symbols of power and religion.