Based on Our Understanding of the IS-LM Model That Takes

question 23

Multiple Choice

Based on our understanding of the IS-LM model that takes into account dynamics,we know that an increase in government spending will cause

• A)a gradual increase in i and gradual increase in Y.
• B)an immediate increase in Y and immediate drop in i.
• C)an immediate increase in i and no initial change in Y.
• D)a gradual increase in i and an immediate increase in Y.

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Definitions:

Domain

The domain of a function is the set of all possible input values (usually x-values) for which the function is defined.

Real Numbers

All the numbers on the number line, including rational and irrational numbers, but not imaginary numbers.

Radical Expression

An expression that includes a radical symbol, which indicates the root of a number.

Simplify

The process of making an expression or equation easier to work with, by reducing it to its most basic form.