Other Things Equal, a Given Change in Government Spending Has

question 66

Multiple Choice

Other things equal, a given change in government spending has a larger effect on demand the:

• A) flatter the IS curve.
• B) steeper the IS curve.
• C) larger the interest sensitivity of expenditure demand.
• D) smaller the interest sensitivity of money demand.

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Definitions:

Single-Parent Families

Describes families headed by one parent, who is responsible for raising one or more children.

Two-Parent Families

A family structure that consists of two adults who are in a committed relationship and are raising their children together.

Depression

An emotional disorder characterized by a chronic condition of depression or a loss of interest in engaging in activities, substantially impairing the conduct of daily affairs.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation or experimentation.