If the Central Bank in a Foreign Country Increases Its

question 127

Multiple Choice

If the central bank in a foreign country increases its interest rate, then the IS curve of the domestic economy will:

• A) shift to the right.
• B) shift to the left.
• C) not shift at all.
• D) shift to the right because U.S. exports will decrease.

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Definitions:

Intellectual Disability

Significantly subnormal cognitive functioning. Also referred to as cognitive disability or mental retardation.

IQ

A measure of a person's intelligence as indicated by an intelligence test, expressed as a number relative to a statistical norm.

Social Promotion

The practice of advancing students to the next grade level regardless of their academic performance.

Academic

Relating to education, schools, universities, or scholarly activities.