The IS Curve Would Be Vertical If

question 17

Multiple Choice

The IS curve would be vertical if

• A)the government's budget was balanced.
• B)autonomous expenditures were insensitive to the interest rate.
• C)the demand for money was insensitive to the interest rate.
• D)the government increased the money supply.

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Definitions:

Cash Dividends

Profits paid out to shareholders by a corporation based on the number of shares they own.

Statement of Cash Flows

A report detailing how modifications in balance sheet accounts and earnings influence cash and cash equivalents.

Common Stock

A type of securities representing ownership in a corporation, whereby holders have voting rights and may receive dividends.

Noncash Investing

Investment activities that do not involve the immediate inflow or outflow of cash, such as acquiring assets through the issuance of equity.