With Normally-Sloped IS and LM Curves,an Increase in Government Spending

question 35

Multiple Choice

With normally-sloped IS and LM curves,an increase in government spending ________ the interest rate,which ________ autonomous planned expenditure,resulting in a final increase in income ________ than what the government spending increase would have produced in the Chapter 3 model.

• A)lowers,raises,greater
• B)lowers,lowers,greater
• C)raises,lowers,less
• D)raises,raises,less
• E)raises,raises,greater

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Definitions:

Experimental Research

A scientific method involving the manipulation of variables to test hypotheses and establish cause-and-effect relationships between them, typically through controlled experiments.

Significant Influence

Significant influence refers to the considerable impact or effect one factor or entity has on another, often determining changes or developments.

Stream Of Consciousness

A narrative technique that presents thoughts and feelings of a character as they occur, often disregarding narrative order.

William James

An American philosopher and psychologist who is often referred to as the father of American psychology, known for his work in pragmatism and functional psychology.