Multiple Choice
The questions with which Chapter 10 is concerned include each of the following except
A) do the determinants of investment in the sticky-price model differ from those of the flexible-price model?
B) what is the "LM" Curve? How do we use is it?
C) what is the "IS Curve"? How do we use is it?
D) how do we calculate the equilibrium level of real GDP in the sticky-price model when the central . bank's policy is to peg the real interest rate?
Correct Answer:
Verified
Correct Answer:
Verified
Q1: The baseline autonomous spending is that part
Q2: In the early 1980s (1982 to 1985)
Q3: An increase in the tax rate will<br>A)
Q4: The opportunity cost of an investment project
Q5: The riskier that lenders believe a loan
Q7: The intercept of the investment function<br>A) tells
Q8: In the sticky-price model, the interest rate
Q9: In general, the higher is the stock
Q10: The slope of the IS curve depends
Q11: The intercept of the IS curve depends