Refer to the Following Figure When Answering the Following Questions

question 30

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 11.3: IS Curve
-Consider Figure 11.3. If investment is infinitely interest rate sensitive, the economy would be characterized by:

• A) IS₁.
• B) IS₃.
• C) IS₂.
• D) IS₄.
• E) Not enough information is given.

---

Definitions:

Divergent Plate Boundary

A region where two tectonic plates move away from each other, leading to the creation of new crust as magma rises to the surface.

Offset Stream Channel

A stream or river channel that has been shifted laterally due to tectonic movement, creating a visible displacement along a fault line.

Active Faults

Faults that have moved recently (in geological terms) and are likely to experience future earthquakes.

Scarp

1. A linear or curved scar left behind by a landslide on a hillslope, marking where the landslide pulled away from the rest of the hill. 2. A break or step in the land surface formed by movement along a fault (fault scarp).