Based on Our Understanding of the IS-LM Model That Takes

question 23

Multiple Choice

Based on our understanding of the IS-LM model that takes into account dynamics,we know that an increase in government spending will cause

• A)a gradual increase in i and gradual increase in Y.
• B)an immediate increase in Y and immediate drop in i.
• C)an immediate increase in i and no initial change in Y.
• D)a gradual increase in i and an immediate increase in Y.

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Definitions:

Bribery

The act of offering, giving, receiving, or soliciting something of value to influence the action of an official or other person in charge of a public or legal duty.

Public Official

An individual holding a position of authority or service in government, serving the public’s interest.

Federal Statute

A law enacted by the national government of the United States, which applies across the entire country, superseding state laws when in conflict.

Criminal Liability

The conditions under which an individual or entity can be held legally responsible for actions classified as crimes by law.