In the IS Model,assuming That the Real Interest Rate Does

question 86

Multiple Choice

In the IS model,assuming that the real interest rate does not change,an increase in autonomous net exports causes total investment,planned plus unplanned,to ________.

• A)fall,then rise back to its initial level
• B)fall,then rise above its initial level
• C)rise,then fall back to its initial level
• D)all of the above
• E)none of the above

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Definitions:

Connection Power

The influence one possesses due to their network and relationships, facilitating the ability to leverage social ties for resources or information.

Reciprocal Alliances

Partnerships or agreements between two or more parties that involve mutual benefits or exchanges.

Reciprocity

The practice of exchanging things with others for mutual benefit, especially privileges granted by one country or organization to another.

Brokers

Intermediaries who facilitate transactions between buyers and sellers in various financial, real estate, or commodity markets.