If Autonomous Spending Does Not Respond to Changes in the Interest

question 81

Multiple Choice

If autonomous spending does not respond to changes in the interest rate, the resulting ________ IS curve implies that an economy ________ self-correct.

• A) horizontal, will instantly
• B) horizontal, can fail to
• C) vertical, will instantly
• D) vertical, can fail to

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Definitions:

Terror Management Theory

A psychological perspective positing that fear of mortality drives humans to develop cultural worldviews for meaning, stability, and self-esteem.

Mortality

The state of being subject to death; the death rate within a population.

Prejudice

a preconceived opinion or judgment towards people or a situation, which is not based on actual experience or reasoning.

Realistic Group Conflict

The theory that group conflicts arise from actual competition for resources or conflicting goals between groups.