In the IS-LM Model, a Decrease in the Interest Rate

question 23

Multiple Choice

In the IS-LM model, a decrease in the interest rate would be the result of a(n) :

• A) increase in the money supply.
• B) increase in government purchases.
• C) decrease in taxes.
• D) increase in money demand.

---

Definitions:

Bilingualism

The ability to understand and use two languages proficiently, often involving complex cognitive processing.

Cognitive Flexibility

The mental ability to switch between thinking about two different concepts, or to think about multiple concepts simultaneously.

Nonverbal Language

Communication without words, which can include gestures, facial expressions, body language, and postures.

Sign Language

A language that conveys meaning through manual communication and body language instead of sound, used primarily by deaf and hard-of-hearing individuals.