At a Given Output Level,a Temporary Reduction in Government Purchases

question 39

Multiple Choice

At a given output level,a temporary reduction in government purchases will

• A)increase desired saving, causing the IS curve to shift down and to the left.
• B)increase desired saving, causing the IS curve to shift up and to the right.
• C)decrease desired saving, causing the IS curve to shift down and to the left.
• D)decrease desired saving, causing the IS curve to shift up and to the right.

---

Definitions:

Nondirectional Research Hypothesis

An assumption indicating a link between variables, yet lacks details on the direction of their relationship.

Nondirectional Research Hypothesis

A hypothesis that predicts a relationship between variables but does not predict the direction of the relationship.

Directional Research Hypothesis

A hypothesis that specifies the direction of the expected difference or relationship between two variables or conditions.

Directional Research Hypothesis

A hypothesis that specifies the expected direction of the relationship between variables, such as predicting an increase or decrease in one variable associated with changes in another variable.