If Government Spending and Taxes Decrease by the Same Amount

question 16

Multiple Choice

If government spending and taxes decrease by the same amount,

• A)the IS curve does not shift.
• B)the IS curve shift leftward.
• C)the IS curve shifts rightward.
• D)the LM curve shifts downward.

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Definitions:

Selectively Permeable

A property of cell membranes that allows some substances to pass through while blocking others.

Glial Cells

Glial cells, also known as glia, are non-neuronal cells in the central nervous system that support, protect, and nourish neurons, playing crucial roles in brain function.

Neural Connections

The links between neurons that are the basis for transmitting signals throughout the nervous system.

Action Potential

A temporary reversal of electrical polarization of the membrane of a nerve cell or muscle cell, enabling the transmission of signals.