As the IS Curve Becomes Steeper,we Know That

question 27

Multiple Choice

As the IS curve becomes steeper,we know that

• A)a given change in the money supply will cause a larger change in output.
• B)a given change in the money supply will cause a smaller change in output.
• C)a given change in the money supply will cause the same change in output.
• D)monetary policy becomes more effective.

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Definitions:

Foreign Exchange Gains

Profits resulting from changes in the value of currency exchange rates.

Foreign Exchange Gain

A gain resulting from changes in exchange rates affecting the value of assets, liabilities, or transactions denominated in foreign currencies.

Income Statement

A financial statement that reports a company's financial performance over a specific period, illustrating revenues, expenses, and net income or loss.

Interest-Bearing Note

A debt instrument that pays interest to the lender over the term of the loan.