Figure 34-5

question 303

Multiple Choice

Figure 34-5.On the left-hand graph,MS represents the supply of money and MD represents the demand for money;on the right-hand graph,AD represents aggregate demand.The usual quantities are measured along the axes of both graphs.

-Refer to Figure 34-5.Suppose the graphs are drawn to show the effects of an increase in government purchases.If it were not for the increase in r from r₁ to r₂,then

• A) there would be no crowding out.
• B) the full multiplier effect of the increase in government purchases would be realized.
• C) the AD curves that actually apply,before and after the change in government purchases,would be separated horizontally by the distance equal to the multiplier times the change in government purchases.
• D) All of the above are correct.

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Definitions:

Synarthrotic

Referring to a type of joint that is completely immobile or fixed, offering stability to the skeletal structure.

Pubic Symphysis

A cartilaginous joint located between the left and right pubic bones near the front of the pelvis.

Tibiofibular Joint

The connection point between the tibia and fibula bones of the lower leg, allowing for slight movement and providing stability to the ankle.

Forearm Medially

The rotation of the forearm so that the palm faces towards the body or medially, known as pronation.