Figure 13-3 -In the Figure Above, Suppose That the Fed Maintains a Fed

question 102

Multiple Choice

Figure 13-3
-In the figure above, suppose that the Fed maintains a fixed real money supply and that commodity demand is also fixed. The range of shifts in the LM curve, LM1 to LM2 lead to

• A) an unstable equilibrium output, C to B1.
• B) a stable equilibrium output, C.
• C) an unstable equilibrium output, B0 to B1.
• D) a stable equilibrium output, B0 to B1.

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Definitions:

Impression Management

The process by which individuals attempt to control the impressions others form of them, often through the manipulation of information in social interactions.

Autonomy

The right or condition of self-government, or freedom from external control or influence.

Non-verbal Signals

Communication cues without the use of words, including gestures, facial expressions, and body language.

Culturally Defined

Aspects or norms that are determined and influenced by the culture in which they are found.