Exam 4: Monetary and Fiscal Policy in the Is-Lm Model

If the Fed's goal is to keep the interest rate fixed, a contractionary fiscal policy must be accompanied by ________ monetary policy that shifts the LM curve to the ________.

According to Paul Krugman, during the past decade Japan's macroeconomic policy should have incorporated which of the following?

The simple fiscal policy multiplier occurs in the IS-LM model when ________ interest responsiveness of money demand produces a ________ LM curve.

Figure 4-1 -Employing Figure above, if Y increases by 3000 and the interest rate is fixed at 5% then the sensitivity of real money balances to changes in real income is

Figure 4-5 -In the figure above, at what point do we find the commodity market in equilibrium while the money market is not?

If the marginal leakage rate is 0.2, then a $300 fall in autonomous planned expenditures will shift the IS curve leftward by the amount of

If the proportion of GDP that people choose to hold in the form of money balances is 0.25, then a $100 increase in the money supply will lead to a rightward shift in the LM curve in the amount of