A Rise in Government Spending Shifts the IS Curve Because

question 32

Multiple Choice

A rise in government spending shifts the IS curve because it ______ national saving for any given level of income,and this ______ the interest rate for any given level of income.

• A) reduces; reduction lowers
• B) reduces; reduction raises
• C) increases; increase raises
• D) increases; increase lowers

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Definitions:

Argumentativeness

A behavioral characteristic involving a tendency or eagerness to engage in debates or arguments, often seen as confrontational.

Mentally Ill

Describes a condition affecting an individual's mental health, often characterized by some form of psychopathology or disorder.

Extended

Made longer in duration or drawn out.

Blended

Describe mixing or combining multiple elements to create a cohesive whole, often used in the context of families, learning methods, or beverages.