If Investment Does Not Depend on the Interest Rate, Then

question 63

Multiple Choice

If investment does not depend on the interest rate, then the ______ curve is ______.

• A) IS; vertical
• B) IS; horizontal
• C) LM; vertical
• D) LM; horizontal

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Definitions:

Concentrated Industries

Industries in which a small number of companies hold a large market share, resulting in reduced competition.

R&D

Research and Development: Activities in connection with corporate or governmental innovation.

Marginal Cost

The spending necessary to fabricate one more unit of a good or service.

Herfindahl-Hirschman Index

An index measuring the level of concentration in a market, calculated by summing the squares of the market shares of all competitors.