In a Move Up the IS Curve

question 5

Multiple Choice

In a move up the IS curve,

• A)investment rises.
• B)output falls.
• C)the real interest rate falls.
• D)saving rises.

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Definitions:

Hedge Labor Income

Strategies or financial instruments used to protect an individual's future income from employment against uncertainty or potential losses.

Risk Averse

A descriptive term for investors or individuals who prefer lower risk or uncertainties, often choosing investments with smaller potential returns to avoid losing money.

Retirement Savings Plan

A retirement savings plan is a financial arrangement designed to replace employment income upon retirement, which can include various types of accounts like 401(k)s and IRAs.

Tax-exempt Saving

An investment account or product that offers tax benefits, such as no taxation on the interest or profits earned.