Exam 27: Web 2:the Islm Model
Exam 1: Why Study Money, banking, and Financial Markets108 Questions
Exam 2: An Overview of the Financial System137 Questions
Exam 3: What Is Money95 Questions
Exam 4: The Meaning of Interest Rates103 Questions
Exam 5: The Behavior of Interest Rates159 Questions
Exam 6: The Risk and Term Structure of Interest Rates114 Questions
Exam 7: The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis97 Questions
Exam 8: An Economic Analysis of Financial Structure93 Questions
Exam 9: Banking and the Management of Financial Institutions148 Questions
Exam 10: Economic Analysis of Financial Regulation98 Questions
Exam 11: Banking Industry: Structure and Competition137 Questions
Exam 12: Financial Crises44 Questions
Exam 13: Central Banks and the Federal Reserve System71 Questions
Exam 14: The Money Supply Process218 Questions
Exam 15: Tools of Monetary Policy121 Questions
Exam 16: The Conduct of Monetary Policy: Strategy and Tactics116 Questions
Exam 17: The Foreign Exchange Market123 Questions
Exam 18: The International Financial System117 Questions
Exam 19: Quantity Theory, inflation, and the Demand for Money112 Questions
Exam 20: The Is Curve130 Questions
Exam 21: The Monetary Policy and Aggregate Demand Curves29 Questions
Exam 22: Aggregate Demand and Supply Analysis108 Questions
Exam 23: Monetary Policy Theory58 Questions
Exam 24: The Role of Expectations in Monetary Policy31 Questions
Exam 25: Transmission Mechanisms of Monetary Policy62 Questions
Exam 26: Web 1:financial Crises in Emerging Market Economies21 Questions
Exam 27: Web 2:the Islm Model99 Questions
Exam 28: Web 3:nonbank Finance78 Questions
Exam 29: Web 4:financial Derivatives90 Questions
Exam 30: Web 5:conflicts of Interest in the Financial Services Industry50 Questions
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An autonomous rise in ________ shifts the LM curve to the ________,everything else held constant.
(Multiple Choice)
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If the price level increases,everything else held constant,the ________ curve shifts to the ________.
(Multiple Choice)
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In the basic closed-economy ISLM model,the goods market can be described by the
(Multiple Choice)
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When the IS and LM curves are combined in the same diagram,the intersection of the two curves determines the equilibrium level of ________ as well as the ________.
(Multiple Choice)
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Using the long-run ISLM model,explain and demonstrate graphically the neutrality of money,for the case of an increase in the money supply.
(Essay)
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In the ISLM framework,an expansionary fiscal policy causes aggregate output to ________ and the interest rate to ________,everything else held constant.
(Multiple Choice)
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A decrease in the quantity of money supplied shifts the money supply curve to the ________,and the LM curve to the ________,everything else held constant.
(Multiple Choice)
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As interest rates rise,the opportunity cost of holding money ________ and the demand for money ________.
(Multiple Choice)
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Everything else held constant,if aggregate output is to the ________ of the LM curve,then there is an excess demand of money which will cause the interest rate to ________.
(Multiple Choice)
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In the basic closed-economy ISLM model,the money market can be described by the
(Multiple Choice)
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Which of the followings does NOT describe the money market in the ISLM model?
(Multiple Choice)
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The situation in which expansionary fiscal policy does not lead to a rise in aggregate output is referred to as
(Multiple Choice)
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An increase in the money ________ shifts the LM curve to the ________,causing the interest rate to fall and output to rise,everything else held constant.
(Multiple Choice)
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Everything else held constant,a monetary contraction is characterized by ________ output and ________ interest rates.
(Multiple Choice)
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If an economy experiences high interest rates and high unemployment,the ISLM framework predicts that ________ policy has been too ________.
(Multiple Choice)
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In the basic closed-economy ISLM model,the LM curve can be described by an equation where
(Multiple Choice)
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In the long-run ISLM model and with everything else held constant,the long-run effect of a contractionary fiscal policy is to ________ real output and ________ the interest rate.
(Multiple Choice)
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If the ________ curve is relatively more unstable than the ________ curve,an interest rate target is preferred.
(Multiple Choice)
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Everything else held constant,if aggregate output is to the left of the LM curve,then there is an excess ________ of money which will cause the interest rate to ________.
(Multiple Choice)
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