In the IS Model, Assuming That the Real Interest Rate

question 16

Multiple Choice

In the IS model, assuming that the real interest rate does not change, an increase in ________ leads to an increase in equilibrium saving by households.

• A) autonomous consumption
• B) taxes
• C) the price level
• D) all of the above
• E) none of the above

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Definitions:

Truth-Functional Compound

A complex statement formed by combining simpler statements with logical connectives, where the truth value depends solely on the truth value of its components.

Quantifier

A term in logic that specifies the quantity of specimens in the domain of discourse that satisfy an open sentence.

Open Sentences

Sentences that contain a variable or variables that can be replaced with a value or values to make the sentence true or false.

Scope

Refers to the extent of the area or subject matter that something deals with or to which it is relevant.