The Effect on the IS Curve of a Reduction in Taxes

question 128

Multiple Choice

The effect on the IS curve of a reduction in taxes will be less the

• A)flatter is the LM curve.
• B)steeper is the LM curve.
• C)greater the extent of "crowding out."
• D)greater is the marginal propensity to save.

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Definitions:

Lepidodendron

An extinct genus of tree-like plants from the Carboniferous period, often referred to as "scale trees".

Oak-Yew Clade

A group within the Plantae kingdom that includes both the oak and yew families, representing an evolutionary lineage.

Anthropoids

A group of primates that includes monkeys, apes, and humans, characterized by larger brains and more complex behavior compared to other primates.

Valid Taxonomic Group

A group of organisms recognized by taxonomists to form a category in the hierarchy of biological classification.