Suppose There Is a Reduction in the Expected Future Interest

question 13

Multiple Choice

Suppose there is a reduction in the expected future interest rate.This will cause which of the following to occur?

• A)the IS curve to shift left in the current period
• B)the IS curve to shift right in the current period
• C)the LM curve to shift up in the current period
• D)the LM curve to shift down in the current period

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Definitions:

Structural Isomers

Molecules that share the same molecular formula but have different arrangements of the atoms within the molecule.

Diastereomers

Stereoisomers that are not mirror images of each other; compounds that have multiple stereocenters with at least one differing in configuration.

Nylon 6,6

A type of polyamide or nylon made from hexamethylene diamine and adipic acid, characterized by high strength and melting point.

Biodegradable Polymer

A type of polymer that can be broken down by biological processes, including microbial action, into natural substances like water and carbon dioxide.