Multiple Choice
If interest rates fall without any corresponding change in income,then it is possible according to the IS-LM model that
A) money demand fell and government spending declined.
B) the money supply increased and taxes declined.
C) tight monetary policy and easy fiscal policy.
D) easy monetary policy and easy fiscal policy.
Correct Answer:
Verified
Correct Answer:
Verified
Q18: Exogenous variables in the IS-LM model variables
Q19: Whenever fiscal policy actions,such as income tax
Q20: Traditional Keynesians tend to favor<br>A)monetary policy over
Q21: If the government raised taxes and reduced
Q22: If the central bank increases the money
Q24: If the government wanted to reduce interest
Q25: An decrease in the velocity of money
Q26: The slope of the LM curve has
Q27: Within the IS-LM curve model,an increase in
Q28: Within the IS-LM curve model,a decline in