Figure 4-6 -In the Figure Above, with IS0 Shifting to IS1 Against

question 53

Multiple Choice

Figure 4-6
-In the figure above, with IS0 shifting to IS1 against the upward-sloping LM curve, crowding-out is the result that

• A) income stays at YO3.
• B) income rises to Y1 instead of to Y2.
• C) income rises to Y1 instead of staying at YO3.
• D) income rises to Y2 instead of to Y1.

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Definitions:

Spermaceti

A waxy substance found in the head cavity of the sperm whale, historically used in candles and ointments.

Potassium Hydroxide

A strong inorganic base with the formula KOH, used in various applications including as a cleaning agent, in the manufacture of biodiesel, and in the synthesis of other chemicals.

Functional Groups

Specific groups of atoms within molecules that are responsible for the characteristic chemical reactions of those molecules.

Carboxylic Acid

Organic compounds containing a carboxyl group (-COOH), which acts as an acidic functional group.