A Decrease in the Money Supply Would Cause the IS

question 3

Multiple Choice

A decrease in the money supply would cause the IS curve to ________ and the LM curve to ________.

• A)shift down and to the left; be unchanged
• B)shift down and to the left; shift up and to the left
• C)be unchanged; shift up and to the left
• D)be unchanged; shift down and to the right

---

Definitions:

Constant Allowances

Fixed sums or quantities that are allocated regularly, such as allowances in budgets or time estimations in project management.

Performance Rating

A quantitative assessment often used to evaluate the efficiency, output, or success of an individual, system, or organization in achieving its objectives.

Normal Time

The average time that a worker takes to complete a specific task under normal working conditions, considering both productive and unproductive time.

Standard Time

indicates the amount of time that should be taken to complete a particular job or task, typically determined through time studies and used for planning and benchmarking.