Refer to the Following Figure When Answering the Following Questions

question 69

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 11.3: IS Curve
-Consider Figure 11.3. If investment is interest rate sensitive, but not infinitely interest rate sensitive, the economy would be best characterized by:

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

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Definitions:

Plantar Reflex

A reflex elicited when the sole of the foot is stimulated, causing the toes to point downward.

Dorsiflexion

The movement that brings the top of the foot toward the shin, decreasing the angle between the dorsum of the foot and the leg.

Plantar Flexion

A movement that decreases the angle between the sole of the foot and the back of the leg, such as pointing the toes.

Reflex Arc

The neural pathway that mediates a reflex action, involving sensory receptors, neural pathways, and effectors.