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:

Normative Influence

The influence of other people that leads us to conform in order to be liked and accepted by them, often resulting in public compliance but not necessarily private acceptance.

Verbal Harassment

Involves using words to belittle, demean, or assault someone, often creating an environment of fear or discomfort for the victim.

Conversion Theory

A psychological theory that suggests a minority group can influence the majority to adopt the minority's beliefs or behaviors under certain conditions.

Mutual Influence

The dynamic process in which individuals or entities affect each other's behaviors and attitudes due to their interactions or relationship.