In the IS-LM Model When M/P Rises, in Short-Run Equilibrium

question 52

Multiple Choice

In the IS-LM model when M/P rises, in short-run equilibrium, in the usual case the interest rate ______ and output ______.

• A) rises; falls
• B) rises; rises
• C) falls; rises
• D) falls; falls

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Definitions:

Cost Control

The process of planning and managing project costs to adhere to a budget.

Resource Planning

Involves determining what resources (time, manpower, equipment, etc.) are required to complete a project successfully.

Adjustment Factor

A multiplier used to alter or refine estimates, budgets, or values, accounting for unforeseen factors or conditions.

Aggregated

Combined from several elements into a single whole or summary.