In the IS Curve, Consumption, Government Expenditure, Exports, and Imports

question 56

Multiple Choice

In the IS curve, consumption, government expenditure, exports, and imports are a function of:

• A) expectations.
• B) current output.
• C) potential output.
• D) the interest rate.
• E) output fluctuations.

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Definitions:

Disjunction

A logical operator that results in truth if at least one of its components is true.

Contingency

An event or condition that is possible but cannot be predicted with certainty, often dependent on other events happening.

Conjunct

A conjunct is a component of a compound sentence formed by the logical connective ‘and’, contributing to the compound's overall truth value.

Conjunction

A word used to connect clauses or sentences (in grammar) or the operation in logic that forms a compound statement which is true only if both of its components are true.