A Lower Interest Rate ________ Ap and Thus Causes ________

question 24

Multiple Choice

A lower interest rate ________ Ap and thus causes ________ the IS curve.

• A)raises,movement downward along
• B)lowers,movement upward along
• C)raises,a parallel rightward shift of
• D)lowers,a parallel leftward shift of

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Definitions:

Withholding Allowance

Withholding allowance is an exemption that reduces how much income tax an employer deducts from an employee's paycheck, based on the number of allowances claimed.

Federal Income Tax

A financial duty enforced by the federal government on the yearly revenues of persons, corporations, trusts, and different legal organizations.

Gross Earnings

The total amount of money earned by an individual or business before any deductions or taxes are applied.

Net Pay

The amount of money that an employee takes home after all deductions, such as taxes and retirement contributions, have been subtracted from the gross salary.