According to the IS-LM Model, When the Government Increases Taxes

question 84

Multiple Choice

According to the IS-LM model, when the government increases taxes and government purchases by equal amounts:

• A) income, the interest rate, consumption, and investment are unchanged.
• B) income and the interest rate rise, whereas consumption and investment fall.
• C) income and the interest rate fall, whereas consumption and interest rise.
• D) income, the interest rate, consumption, and investment all rise.

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Definitions:

Motivational Tactic

Strategies or actions employed to inspire or encourage individuals or groups to achieve desired goals or undertake specific behaviors.

Job Design

The process of organizing tasks, duties, responsibilities, and other elements into a job structure to improve satisfaction and performance.

Job Rotation

A technique used in employee development where individuals are moved between various jobs at similar levels in an organization to gain different skills and experiences.

Psychological Empowerment

A state in which individuals feel a sense of control over their work, understand their role's significance, and perceive themselves as capable of completing tasks.