Suppose There Is a Simultaneous Reduction in the Expected Future

question 16

Multiple Choice

Suppose there is a simultaneous reduction in the expected future interest rate and increase in future expected output.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
• E) an ambiguous effect on the position of the IS curve in the current period

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Definitions:

ATPs

ATPs are molecules known as adenosine triphosphate, which store and provide energy for many biochemical cellular processes through the release of a phosphate group.

Plasma Membrane

The lipid bilayer that surrounds a cell, controlling the movement of substances in and out of the cell.

Carbohydrates

Organic compounds consisting of carbon, hydrogen, and oxygen, usually in the ratio 1:2:1, serving as a major energy source for the body.

Actin

A protein that forms (together with myosin) the contractile filaments of muscle cells and is also involved in motion in other types of cells.