Consider an Initial IS-LM Equilibrium with Normally-Sloped Curves

question 135

Multiple Choice

Consider an initial IS-LM equilibrium with normally-sloped curves.An increase in government spending shifts the ________ by a horizontal distance equal to the change in government spending ________.

• A)IS curve to the right,divided by the Chapter 3 multiplier
• B)IS curve to the right,times the Chapter 3 multiplier
• C)IS curve to the left,times the interest rate at the initial equilibrium
• D)LM curve to the right,divided by the Chapter 3 multiplier
• E)LM curve to the right,divided by the interest rate at the initial equilibrium

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Definitions:

One-group Pretest-posttest Design

A research design in which a single group is measured or tested before and after an intervention to assess change.

Participants Change

The phenomenon where individuals in a study alter their behavior or responses due to awareness of being observed or other study factors.

Time

A continuous sequence of events, perceived by its passage and measurable in hours, minutes, and seconds.

Experimental Manipulation

The process of intentionally changing a variable in an experiment to study its effects on other variables.