A Vertical IS Curve Comes from the Assumption That Changes

question 18

Multiple Choice

A vertical IS curve comes from the assumption that changes in the interest rate do not affect

• A) money demand.
• B) the money supply.
• C) autonomous planned spending.
• D) the LM curve.

---

Definitions:

Percentile

A measure used in statistics indicating the value below which a given percentage of observations in a group of observations fall.

Standard Normal Distribution

A special case of the normal distribution with a mean of zero and a standard deviation of one.

Probability

A measure of the likelihood of a specific event or outcome, expressed as a number between 0 and 1.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the individual values in a dataset deviate from the mean of the dataset.