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:

Marketing Decision

The choice made by a business regarding various aspects of marketing such as product development, pricing, promotions, and distribution channels to achieve specific objectives.

Decision Process

The cognitive process that involves making a selection among multiple alternatives, typically followed in problem-solving or choosing between options.

Environmental Scan

The process of systematically examining external and internal environments to identify opportunities, threats, trends, and strategic uncertainties.

Direct Forecast

A method of predicting future values such as sales or trends by directly analyzing specific variables or indicators.