The IS-LM Model Predicts That a Temporary Beneficial Supply Shock

question 44

Multiple Choice

The IS-LM model predicts that a temporary beneficial supply shock

• A)increases output, national saving, and investment, but not the real interest rate.
• B)increases output, national saving, and the real interest rate, but not investment.
• C)increases the real interest rate, investment, and output, but not national saving.
• D)increases output, national saving, investment, and the real interest rate.

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Definitions:

Impasses

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Anxiety And Defenses

Psychological mechanisms used unconsciously by individuals to protect themselves from anxiety and to manage emotional distress.

Divided Life

Describes a state of living where an individual's life is split between different roles, responsibilities, or inner conflicts, leading to a sense of fragmentation.

Gestalt Therapy

A form of psychotherapy that emphasizes personal responsibility and focuses on the individual's experience in the present moment, the therapist-client relationship, the environmental and social contexts of a person's life, and the self-regulating adjustments they make as a response to their situation.