Suppose There Is a Simultaneous Reduction in the Expected Future

question 16

Multiple Choice

Suppose there is a simultaneous reduction in the expected future interest rate and increase in future expected output.This will cause which of the following to occur?

• A)the IS curve to shift left in the current period
• B)the IS curve to shift right in the current period
• C)the LM curve to shift up in the current period
• D)the LM curve to shift down in the current period
• E) an ambiguous effect on the position of the IS curve in the current period

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Definitions:

Erythrocytes

Red blood cells that carry oxygen from the lungs to the body tissues and carbon dioxide as a waste product away from tissues back to the lungs.

High Lipid

A condition characterized by an elevated level of lipids in the blood, which can increase the risk of cardiovascular diseases.

Chyle

A milky bodily fluid consisting of lymph and emulsified fats, absorbed from the intestines during digestion.

Lymphatic Vessels

Tubes that carry lymph, a clear fluid that helps the body rid itself of toxins, waste, and other unwanted materials.