Which of the Following Statements Concerning Keynesian ISLM Analysis Is

question 86

Multiple Choice

Which of the following statements concerning Keynesian ISLM analysis is true?

• A) For a given change in taxes, the IS curve will shift less than for an equal change in government spending.
• B) Changes in net exports arising from a change in interest rates causes a shift in the IS curve.
• C) A fall in the money supply shifts the LM curve to the right.
• D) Expansionary fiscal policy will cause the interest rate to fall.

---

Definitions:

Maturation

The process of development and growth, whether physical or psychological, that occurs naturally over time, influenced by genetic and environmental factors.

Nurture

The care, education, and environmental influences that contribute to the physical, emotional, and intellectual development of an individual.

Conservation

The cognitive ability to understand that certain properties of objects, such as volume or mass, remain the same despite changes in the object's form.

Accommodation

In cognitive psychology, the process by which individuals adjust their mental structures to incorporate new information.