Multiple Choice
When the policy rate decreases,
A) IS curve does not change.
B) IS curve shifts to the right.
C) IS curve shifts to the left.
D) LM curve shifts upward.
E) LM curve shifts downward.
Correct Answer:
Verified
Correct Answer:
Verified
Q23: The price setting relation is<br>A)horizontal.<br>B)upward sloping.<br>C)downward sloping.<br>D)vertical.
Q24: As fiscal consolidation takes place,the central bank
Q25: The zero lower bound refers to the
Q26: If the output is too high,to achieve
Q27: Empirically output growth 1% above normal for
Q29: In the short run,an increase in the
Q30: When a government reduces its deficits by
Q31: The wage setting relation is<br>A)downward sloping.<br>B)upward sloping.<br>C)vertical.<br>D)horizontal.
Q32: In the short run,a reduction in the
Q33: For this question,assume that the economy is