Multiple Choice
If Y>C+I+G but Md= Ms,then
A) interest rates must rise and output must fall.
B) both interest rates and output must fall.
C) interest rates must fall and output must rise.
D) both interest rates and output must rise.
E) none of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: In the classical model,<br>A)both fiscal and monetary
Q2: In the IS-LM model,the two variables that
Q3: If the consumption function is given by
Q4: Suppose that there is an unexpected increase
Q5: The IS curve becomes steeper when there
Q7: Household consumption likely depends upon accumulated wealth
Q8: If savings becomes more interest rate elastic,what
Q9: If M<sup>d</sup> = 2,600 - 200r,the MPC
Q10: Along any IS curve<br>A)both government spending and
Q11: Figure 6.1<br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3748/.jpg" alt="Figure 6.1