According to the IS-LM Model, If Congress Raises Taxes but the Fed

question 85

Multiple Choice

According to the IS-LM model, if Congress raises taxes but the Fed wants to hold income constant, then the Fed must ______ the money supply.

• A) increase
• B) decrease
• C) first increase and then decrease
• D) first decrease and then increase

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Definitions:

Follower Identification

The extent to which followers see themselves as being similar to, and aligned with, their leaders and the group.

Lowers Optimism

A state or condition where an individual's hopeful outlook or expectations about the future are diminished or reduced.

Transformational Leadership Model

A leadership approach that causes change in individuals and social systems, emphasizing vision, inspiration, challenge, and personal development.

Inspirational Motivation

The aspect of leadership that involves inspiring and motivating followers to achieve higher levels of performance through a compelling vision of the future.