If the Economy Is Characterized by a Stable IS Curve

question 17

Multiple Choice

If the economy is characterized by a stable IS curve and an unstable LM curve,then ________ target produces ________ fluctuations in aggregate output.

• A)an interest rate;larger
• B)a money supply;smaller
• C)a money supply;larger
• D)an exchange rate;smaller

---

Definitions:

Learning

The acquisition of knowledge or skills through experience, study, or being taught, which leads to a permanent change in behavior.

Competencies

A combination of skills, knowledge, and abilities that enable a person to perform tasks successfully.

Interpreting the World

The cognitive process of making sense of the environment and events around us, often influenced by personal experiences, culture, and cognitive biases.

Behavior Regulation

The process of controlling, guiding, and managing one's actions and reactions in accordance with social or personal expectations.