Even in the Event of a Horizontal LM Curve, Classicists

question 62

Multiple Choice

Even in the event of a horizontal LM curve, classicists argued that government intervention would not be required if the IS curve shifts in response to changes in

• A) the price level (the Pigou effect).
• B) the unemployment level (the real balance effect).
• C) interest rate (the Keynes effect).
• D) exchange rate (the expectations effect).

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Definitions:

K-selected Organisms

Species that produce fewer offspring, with each individual having a higher probability of surviving to adulthood.

Reproductive Rate

The speed at which a species or individual organism produces offspring, influencing population growth.

Population Size

The total number of individuals within a defined area at the same time, influencing genetic diversity and a population's ability to survive environmental pressures.

Natality

The rate at which births occur in a population, measured as the number of births per unit of time, typically per year.