The IS-LM Model Predicts That a Temporary Beneficial Supply Shock

question 44

Multiple Choice

The IS-LM model predicts that a temporary beneficial supply shock

• A)increases output, national saving, and investment, but not the real interest rate.
• B)increases output, national saving, and the real interest rate, but not investment.
• C)increases the real interest rate, investment, and output, but not national saving.
• D)increases output, national saving, investment, and the real interest rate.

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Definitions:

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychological development of human beings.

Identity Confusion

A developmental stage where individuals struggle with questions about who they are and their role in society, often occurring during adolescence.

Intolerance

Lack of acceptance of differing views, habits, or beliefs, often leading to conflict.

Virtue

Virtue is the quality of moral excellence, righteousness, and adherence to ethical principles in one's behavior and decision-making processes.