The IS Curve ________

question 35

Multiple Choice

The IS Curve ________.

• A)demonstrates how central banks respond to changes in inflation with changes in the interest rate
• B)shows how changes in interest rates affect equilibrium output
• C)explains short run fluctuations in output and inflation
• D)all of the above
• E)none of the above

---

Definitions:

Contractual Incapacity

A condition where a party lacks the legal ability to enter into a contract, typically due to age, mental state, or other disqualifications.

Necessaries

Basic needs or essential goods and services required for an individual's well-being and survival.

Emancipated Minors

Minors who have been legally granted some of the rights and responsibilities of adulthood, often through court process or marriage.

Avoid

To keep away from or prevent something from happening, often used in legal contexts regarding contracts or obligations.