If the ________ Curve Is Relatively More Unstable Than the ________

question 37

Multiple Choice

If the ________ curve is relatively more unstable than the ________ curve,an interest rate target is preferred.

• A)IS;IS
• B)IS;LM
• C)LM;IS
• D)LM;LM

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Definitions:

Indifference Curves

A graph representing different bundles of goods between which a consumer is indifferent, showing the trade-offs a consumer is willing to make between two goods.

Bowed Inward

Describing a curve, specifically in the context of an economics graph, that concaves towards the origin, indicating increasing returns or efficiency.

Upward Sloping

refers to a graph line that shows an increase in one variable as another variable increases, commonly seen in supply curves.

Budget Constraint

An economic model that represents all the combinations of goods and services a consumer can afford given their income and prices.