In the IS Model,assuming That the Real Interest Rate Does

question 64

Multiple Choice

In the IS model,assuming that the real interest rate does not change,an increase in ________ leads to an increase in equilibrium saving by households.

• A)autonomous investment
• B)government purchases
• C)autonomous net exports
• D)all of the above
• E)none of the above

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Definitions:

Logarithm

The inverse operation to exponentiation, indicating the power to which a base number must be raised to produce a given number.

Logarithm

The exponent to which a base must be raised to produce a given number, expressing the relationship between a geometric progression and an arithmetic progression.

Calculator

An electronic device or software used for performing mathematical operations.

Inverse Function

A function that reverses the effect of the original function, such that applying both the function and its inverse will return the original input.