An increase in investment demand for any given level of income and interest rates—due, for example, to more optimistic "animal spirits"—will, within the IS-LM framework, ______ output and ______ interest rates. A) increase; lower B) increase; raise C) lower; lower D) lower; raise

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• In 2019, Tom sold Sears stock for $10,000, which he had bought for $13,000 four years earlier. He also sold Ford Motor Company bonds for $35,000, which he had purchased for $30,000 two months earlier. Additionally, Tom sold Home Depot stock for $2,500 that he had acquired two years prior for $1,000. Calculate Tom's net gain or loss and indicate whether it is a short-term or long-term gain or loss. Calculations: For Sears stock: Purchase price: $13,000 Sale price: $10,000 Loss: $13,000 - $10,000 = $3,000 (long-term, since held for more than one year) For Ford Motor Company bonds: Purchase price: $30,000 Sale price: $35,000 Gain: $35,000 - $30,000 = $5,000 (short-term, since held for less than one year) For Home Depot stock: Purchase price: $1,000 Sale price: $2,500 Gain: $2,500 - $1,000 = $1,500 (long-term, since held for more than one year) Net gain or loss: ($5,000 gain from Ford bonds) + ($1,500 gain from Home Depot stock) - ($3,000 loss from Sears stock) = $3,500 net long-term gain.
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