In the Case of "Unresponsive Expenditures," the Operation of the Pigou

question 112

Multiple Choice

In the case of "unresponsive expenditures," the operation of the Pigou effect

• A) shifts the LM curve downward, raising output.
• B) shifts the LM curve downward, but fails to affect output.
• C) shifts the IS curve rightward, but since that curve is vertical this has no effect on output.
• D) shifts the IS curve rightward, raising output.
• E) steep, weakening

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Definitions:

Egocentric

Having or regarding the self or the individual as the center of all things.

Stereotypical

Relating to a widely held but fixed and oversimplified image or idea of a particular type of person or thing.

Mnemonic Device

A tool or strategy used to improve memory by making information easier to remember.

Acronym

An abbreviation formed from the initial letters of other words and pronounced as a word.