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

question 65

Multiple Choice

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

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

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Definitions:

System Of Rules

A structured set of guidelines or principles designed to govern behavior or processes.

Authority

The power or right to give orders, make decisions, and enforce obedience.

DEA

Short for Drug Enforcement Administration, a United States federal agency responsible for combating drug smuggling and use within the country.

Enforcement Power

The authority given to entities to ensure compliance with laws, regulations, or standards.