A Flat LM Curve Implies That

question 28

Multiple Choice

A flat LM curve implies that

• A)an increase in government spending will change output by a relatively small amount.
• B)a decrease in taxes will change output by a relatively small amount.
• C)changes in government spending and taxes will have a large multiple effect on output.
• D)A and B.

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Definitions:

Vision

Vision pertains to the ability to see, including the process by which light is converted by the eye into electrical signals for interpretation by the brain.

Taste

A sense that allows the detection of flavor, or the aesthetic discernment and appreciation of things.

Hearing

The physiological process by which sound waves are converted into electrical signals that are interpreted by the brain.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed, seen, or heard, a concept important in cognitive development.