In the IS Curve,if Y Falls for Any Given Level

question 4

Multiple Choice

In the IS curve,if Y falls for any given level of the real interest rate ________.

• A)consumption decreases
• B)output increases
• C)saving increases
• D)all of the above
• E)none of the above

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Definitions:

Reasonably Possible

A term used in accounting and law to describe a situation or outcome that, while not certain, is more than a remote possibility.

Estimable

Capable of being estimated or appraised, often used in finance and accounting to describe assets or liabilities that can be accurately assessed.

Installment Note

A debt instrument that requires regular payments, or installments, of principal and interest over a specified period.

Fiscal Year

A one-year period used for financial reporting and budgeting, which does not necessarily coincide with the calendar year.