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

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Definitions:

Positive Exponents

Represent numbers multiplied by themselves a certain amount of times, indicating a base raised to the power of a positive number.

Expression

A combination of numbers, variables, and mathematical operations that represents a particular value.

X

Often used in mathematics as a variable or unknown value in equations and algebraic expressions.

Simplify

The process of altering an expression to make it easier to understand or work with, often by combining like terms or eliminating complex fractions.