In the IS Curve,if Y Falls for Any Given Level

question 4

Multiple Choice

In the IS curve,if Y falls for any given level of the real interest rate ________.

• A)consumption decreases
• B)output increases
• C)saving increases
• D)all of the above
• E)none of the above

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Definitions:

Valence

The value or importance an individual places on the expected outcome of a particular behavior or action.

Expectancy

The belief or anticipation regarding the outcome of one's efforts, which can significantly influence motivation and behavior.

Publicly

Pertains to anything done or existing in open view, accessible to all members of the community or targeted audience, often under public scrutiny.

Discomfort

A feeling of physical or emotional unease or discomfort, often leading to avoidance behavior or a desire for change.