A Change in the Multiplier (K)will Change the

question 21

Multiple Choice

A change in the multiplier (k) will change the

• A)slope of the IS curve.
• B)slope and the position of the IS curve.
• C)slope of the LM curve.
• D)position of the LM curve.

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Definitions:

Subsidiary

A company controlled by another company, often referred to as the parent company, through ownership of more than half of its stock.

U.S. Dollar

The official currency of the United States, commonly used worldwide as a standard of exchange.

Functional Currency

The main currency used by a business or unit within a company for accounting purposes, reflecting the primary economic environment in which it operates.

Pound Sterling

The official currency of the United Kingdom, which is one of the world's oldest currencies still in use.