The IS Curve Is Y = 20 - 1

question 70

Multiple Choice

The IS curve is Y = 20 - 1.5r,and the aggregate demand curve is Y = 15.5 - 0.3π.The monetary policy curve is ________.

• A)r = 4.5 - 1.8π
• B)r = 20 + 0.3π
• C)r = 3 + 0.2π
• D)Y = 17.75 + 0.6π
• E)none of the above

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Definitions:

Temporary

Lasting for only a limited period; not permanent.

Optimistic People

Individuals who generally expect positive outcomes and look at the brighter side of life.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Optimism

A mental attitude reflecting a belief or hope that the outcome of some specific endeavor, or outcomes in general, will be positive, favorable, and desirable.