Exhibit: Market for Real Money Balances Based on the graph, if the interest rate is r3, then people will _____ bonds, and the interest rate will _____.

A) sell; rise B) sell; fall C) buy; rise D) buy; fall A) sell; rise B) sell; fall C) buy; rise D) buy; fall

Exam 11: Aggregate Demand I: Building the Islm Model

Explore all topics

Exhibit: Market for Real Money Balances Based on the graph, if the interest rate is r₃, then people will _ bonds, and the interest rate will _.

(Multiple Choice)

4.9/5

(28)

Question 21

When firms experience unplanned inventory accumulation, they typically:

(Multiple Choice)

4.9/5

(35)

Question 22

In the Keynesian-cross model, if the MPC equals 0.75, then a $3 billion decrease in taxes increases planned expenditures by _ and increases the equilibrium level of income by _.

(Multiple Choice)

4.9/5

(33)

Question 23

Changes in monetary policy shift the:

(Multiple Choice)

4.8/5

(28)

Question 24

John Maynard Keynes wrote that low income and high unemployment in economic downturns should be blamed on:

(Multiple Choice)

4.8/5

(36)

Question 25

The Keynesian-cross analysis assumes planned investment:

(Multiple Choice)

4.9/5

(35)

Question 26

Changes in fiscal policy shift the:

(Multiple Choice)

4.8/5

(35)

Question 27

The IS-LM model takes _____ as exogenous.

(Multiple Choice)

4.8/5

(31)

Question 28

The interest rate determines _ in the goods market and money _ in the money market.

(Multiple Choice)

4.8/5

(33)

Question 29

With the real money supply held constant, the theory of liquidity preference implies that a higher income level will be consistent with:

(Multiple Choice)

4.9/5

(34)

Question 30

If the interest rate is above the equilibrium value, the:

(Multiple Choice)

4.8/5

(36)

Question 31

In the Keynesian-cross model, actual expenditures differ from planned expenditures by the amount of:

(Multiple Choice)

4.9/5

(40)

Question 32

Planned expenditure is a function of:

(Multiple Choice)

4.8/5

(30)

Question 33

Assume that the money demand function is (M / P)^d = 2,200 - 200r, where r is the interest rate in percent. The money supply M is 2,000, and the price level P is 2. If the price level is fixed and the supply of money is raised to 2,800, then the equilibrium interest rate will:

(Multiple Choice)

4.9/5

(40)

Question 34

A decrease in the nominal money supply, other things being equal, will shift the LM curve:

(Multiple Choice)

4.8/5

(34)

Question 35

Based on the Keynesian model, one reason to support government spending increases over tax cuts as measures to increase output is that:

(Multiple Choice)

4.7/5

(41)

Question 36

In the liquidity preference model, what adjusts to move the money market to equilibrium following a change in the money supply?

(Multiple Choice)

5.0/5

(29)

Question 37

The IS-LM model is generally used:

(Multiple Choice)

4.8/5

(40)

Question 38

The IS-LM model simultaneously determines equilibrium in two markets. a.Which two markets? b.What two variables adjust to bring equilibrium in the markets?

(Essay)

4.9/5

(40)

Question 39

In the Keynesian-cross model, if taxes are reduced by 250, then the equilibrium level of income:

(Multiple Choice)

4.7/5

(44)

Question 40

Showing 21 - 40 of 87

Exhibit: Market for Real Money Balances Based on the graph, if the interest rate is r₃, then people will _ bonds, and the interest rate will _.

When firms experience unplanned inventory accumulation, they typically:

In the Keynesian-cross model, if the MPC equals 0.75, then a $3 billion decrease in taxes increases planned expenditures by _ and increases the equilibrium level of income by _.

Changes in monetary policy shift the:

John Maynard Keynes wrote that low income and high unemployment in economic downturns should be blamed on:

The Keynesian-cross analysis assumes planned investment:

Changes in fiscal policy shift the:

The IS-LM model takes _____ as exogenous.

The interest rate determines _ in the goods market and money _ in the money market.

With the real money supply held constant, the theory of liquidity preference implies that a higher income level will be consistent with:

If the interest rate is above the equilibrium value, the:

In the Keynesian-cross model, actual expenditures differ from planned expenditures by the amount of:

Planned expenditure is a function of:

Assume that the money demand function is (M / P)^d = 2,200 - 200r, where r is the interest rate in percent. The money supply M is 2,000, and the price level P is 2. If the price level is fixed and the supply of money is raised to 2,800, then the equilibrium interest rate will:

A decrease in the nominal money supply, other things being equal, will shift the LM curve:

Based on the Keynesian model, one reason to support government spending increases over tax cuts as measures to increase output is that:

In the liquidity preference model, what adjusts to move the money market to equilibrium following a change in the money supply?

The IS-LM model is generally used:

The IS-LM model simultaneously determines equilibrium in two markets. a.Which two markets? b.What two variables adjust to bring equilibrium in the markets?

In the Keynesian-cross model, if taxes are reduced by 250, then the equilibrium level of income:

The Science of Macroeconomics

The Data of Microeconomics

National Income: Where It Comes From and Where It Goes

The Monetary System: What It Is and How It Works

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Unemployment and the Labour Market

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand Ii: Applying the Islm Model

The Open Economy Revisited: the Mundellfleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

The Microfoundations of Consumption and Investment

Filters

Exam 11: Aggregate Demand I: Building the Islm Model

Exhibit: Market for Real Money Balances Based on the graph, if the interest rate is r3, then people will _____ bonds, and the interest rate will _____.

When firms experience unplanned inventory accumulation, they typically:

In the Keynesian-cross model, if the MPC equals 0.75, then a $3 billion decrease in taxes increases planned expenditures by _____ and increases the equilibrium level of income by _____.

Changes in monetary policy shift the:

John Maynard Keynes wrote that low income and high unemployment in economic downturns should be blamed on:

The Keynesian-cross analysis assumes planned investment:

Changes in fiscal policy shift the:

The IS-LM model takes _____ as exogenous.

The interest rate determines _____ in the goods market and money _____ in the money market.

With the real money supply held constant, the theory of liquidity preference implies that a higher income level will be consistent with:

If the interest rate is above the equilibrium value, the:

In the Keynesian-cross model, actual expenditures differ from planned expenditures by the amount of:

Planned expenditure is a function of:

Assume that the money demand function is (M / P)d = 2,200 - 200r, where r is the interest rate in percent. The money supply M is 2,000, and the price level P is 2. If the price level is fixed and the supply of money is raised to 2,800, then the equilibrium interest rate will:

A decrease in the nominal money supply, other things being equal, will shift the LM curve:

Based on the Keynesian model, one reason to support government spending increases over tax cuts as measures to increase output is that:

In the liquidity preference model, what adjusts to move the money market to equilibrium following a change in the money supply?

The IS-LM model is generally used:

The IS-LM model simultaneously determines equilibrium in two markets. a.Which two markets? b.What two variables adjust to bring equilibrium in the markets?

In the Keynesian-cross model, if taxes are reduced by 250, then the equilibrium level of income:

The Science of Macroeconomics

The Data of Microeconomics

National Income: Where It Comes From and Where It Goes

The Monetary System: What It Is and How It Works

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Unemployment and the Labour Market

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand Ii: Applying the Islm Model

The Open Economy Revisited: the Mundellfleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

The Microfoundations of Consumption and Investment

Filters

Exhibit: Market for Real Money Balances Based on the graph, if the interest rate is r₃, then people will _ bonds, and the interest rate will _.

In the Keynesian-cross model, if the MPC equals 0.75, then a $3 billion decrease in taxes increases planned expenditures by _ and increases the equilibrium level of income by _.

The interest rate determines _ in the goods market and money _ in the money market.

Assume that the money demand function is (M / P)^d = 2,200 - 200r, where r is the interest rate in percent. The money supply M is 2,000, and the price level P is 2. If the price level is fixed and the supply of money is raised to 2,800, then the equilibrium interest rate will: