Consider the Following Model of the IS Curve Without an International

question 68

Multiple Choice

Consider the following model of the IS curve without an international sector:
Consumption: $C _ { t } = \bar { a } _ { c } \bar { Y } _ { t }$
Investment: $I _ { t } = \bar { a } _ { t } \bar { Y } _ { t }$
Government expenditure: $G _ { t } = \bar { a } _ { g } \bar { Y } _ { t }$
With this formulation the IS curve is:

• A) horizontal
• B) less steeply sloped than the "standard" IS curve
• C) vertical
• D) more steeply sloped than the "standard" IS curve
• E) Not enough information is given.

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Definitions:

Genetically Modified

Organisms whose genetic material has been altered using genetic engineering techniques.

Pesticides

Chemicals used to kill or control pests in agriculture, such as insects, weeds, or fungi, to protect crops and enhance productivity.

Environmental Degradation

The deterioration of the natural environment due to human activity, leading to the depletion of natural resources and loss of biodiversity.

Agriculture

The act of working the land, growing food plants, and breeding animals for human needs and dietary purposes.