In the IS Curve,if Y Increases for Any Given Level

question 25

Multiple Choice

In the IS curve,if Y increases for any given level of the real interest rate ________.

• A)consumption increases
• B)output decreases
• C)saving decreases
• D)all of the above
• E)none of the above

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Definitions:

Consumer Preference

The inclination of consumers toward certain products or services over others based on their characteristics, such as taste, quality, and price.

Equilibrium

An equilibrium in the market where demand matches supply, thereby stabilizing prices.

General Equilibrium

An economic condition where supply and demand are balanced across all markets in the economy, leading to an optimal distribution of resources.

Simultaneous Equilibrium

A condition in which all markets in an economy are in equilibrium at the same time, reflecting a balance between supply and demand.