Suppose There Is an Increase in the Expected Future Interest

question 6

Multiple Choice

Suppose there is an increase 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

---

Definitions:

Memory

The cognitive function that allows individuals to store, retain, and recall information and experiences.

Adversities

Difficult or unpleasant situations and experiences that may pose challenges to individuals or communities.

Wisdom

The ability to apply knowledge, experience, understanding, and common sense in a considered and judicious way, often associated with insight and good judgment.

Great Depression

A severe worldwide economic downturn that lasted from 1929 to the late 1930s, marked by massive unemployment, bank failures, and a significant reduction in economic activity.