Multiple Choice
In addition to consumption being a function of income,suppose that it is also a function of interest rates.Now,lower interest rates make borrowing to consume easier,encouraging overall consumption.
A) How would such a change impact the shape of the IS and LM curves? AD curve?
B) How would such a change impact the effectiveness of monetary and fiscal policy? Multiple-Choice Questions:
Correct Answer:
Verified
Correct Answer:
Verified
Q8: The aggregate supply schedule is steeper where
Q9: Which of the following statements is correct?<br>A)The
Q10: Compared to the fixed-price/fixed-wage model,in the Keynesian
Q11: Which of the following variables will shift
Q12: If the Keynesian model is correct,what should
Q14: The difference between the Keynesian and classical
Q15: Why is the IS-LM model a model
Q16: If business cycles are caused by changes
Q17: In the case of an increase in
Q18: Suppose the government want to increase aggregate