If the Economy Is on the IS Curve,but Is to the Right

question 63

Multiple Choice

If the economy is on the IS curve,but is to the right of the LM curve,aggregate output will ________ and the interest rate will ________.

• A)rise;rise
• B)rise;fall
• C)fall;rise
• D)fall;fall

---

Definitions:

Tactile Corpuscle

A sensory receptor located in the dermal papillae, particularly sensitive to light touch; also referred to as a Meissner's corpuscle.

Dermal Papilla

A structure located at the base of the hair follicle that provides nutrients to the hair and contains capillaries and nerve endings.

Hypodermis

The hypodermis is the deepest layer of skin, located beneath the dermis, and is primarily made of fat and connective tissue.

Reticular Layer

The deeper layer of the dermis, made up of dense irregular connective tissue that provides skin with strength and elasticity.