Question 1

An increase in spending that results from expansionary ________ policy causes the interest rate to ________,everything else held constant.

Accepted Answer

A)  fiscal; rise 
B)  fiscal; fall 
C)  incomes; rise 
D)  incomes; fall 
A)  fiscal; rise 
B)  fiscal; fall 
C)  incomes; rise 
D)  incomes; fall

Question 2

If the economy is on the LM curve,but is to the right of the IS curve,then the ________ market is in equilibrium,but aggregate ________ exceeds aggregate ________.

Accepted Answer

A)  goods; output; demand 
B)  goods; demand; output 
C)  money; output; demand 
D)  money; demand; output 
A)  goods; output; demand 
B)  goods; demand; output 
C)  money; output; demand 
D)  money; demand; output

Question 3

In the money market,a condition of excess supply of money can be eliminated by a ________ in aggregate output or a ________ in the interest rate,everything else held constant.

Accepted Answer

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

Question 4

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 ________.

Accepted Answer

A)  right; fall 
B)  right; rise 
C)  left; fall 
D)  left; rise 
A)  right; fall 
B)  right; rise 
C)  left; fall 
D)  left; rise

Question 5

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 ________.

Accepted Answer

A)  supply; fall 
B)  supply; rise 
C)  demand; fall 
D)  demand; rise 
A)  supply; fall 
B)  supply; rise 
C)  demand; fall 
D)  demand; rise

Question 6

Which of the following statements concerning Keynesian ISLM analysis is true?

Accepted Answer

A)  For a given change in taxes, the IS curve will shift less than for an equal change in government spending. 
B)  Changes in net exports arising from a change in interest rates causes a shift in the IS curve. 
C)  A fall in the money supply shifts the LM curve to the right. 
D)  Expansionary fiscal policy will cause the interest rate to fall. 
A)  For a given change in taxes, the IS curve will shift less than for an equal change in government spending. 
B)  Changes in net exports arising from a change in interest rates causes a shift in the IS curve. 
C)  A fall in the money supply shifts the LM curve to the right. 
D)  Expansionary fiscal policy will cause the interest rate to fall.

An increase in spending that results from expansionary policy causes the interest rate to ,everything else held constant.

If the economy is on the LM curve,but is to the right of the IS curve,then the market is in equilibrium,but aggregate exceeds aggregate .

In the money market,a condition of excess supply of money can be eliminated by a in aggregate output or a in the interest rate,everything else held constant.

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 .

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 .

Which of the following statements concerning Keynesian ISLM analysis is true?

Why Study Money, banking, and Financial Markets

An Overview of the Financial System

What Is Money

Understanding Interest Rates

The Behavior of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Financial Crises

Banking and the Management of Financial Institutions

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

Central Banks and the Federal Reserve System

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, inflation and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

Filters

Exam 26: The ISLM Model

An increase in spending that results from expansionary ________ policy causes the interest rate to ________,everything else held constant.

If the economy is on the LM curve,but is to the right of the IS curve,then the ________ market is in equilibrium,but aggregate ________ exceeds aggregate ________.

In the money market,a condition of excess supply of money can be eliminated by a ________ in aggregate output or a ________ in the interest rate,everything else held constant.

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 ________.

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 ________.

Which of the following statements concerning Keynesian ISLM analysis is true?

Why Study Money, banking, and Financial Markets

An Overview of the Financial System

What Is Money

Understanding Interest Rates

The Behavior of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Financial Crises

Banking and the Management of Financial Institutions

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

Central Banks and the Federal Reserve System

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, inflation and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

Filters

An increase in spending that results from expansionary policy causes the interest rate to ,everything else held constant.

If the economy is on the LM curve,but is to the right of the IS curve,then the market is in equilibrium,but aggregate exceeds aggregate .

In the money market,a condition of excess supply of money can be eliminated by a in aggregate output or a in the interest rate,everything else held constant.

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 .

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 .