Multiple Choice
Consider an initial IS-LM equilibrium with normally-sloped curves.An increase in government spending takes us to a new equilibrium with ________ income and ________ interest rate.
A) higher,a higher
B) higher,a lower
C) an unchanged,a higher
D) an unchanged,a lower
E) lower,an unchanged
Correct Answer:
Verified
Correct Answer:
Verified
Q41: If a given fiscal policy is fully
Q42: Suppose the government increases its expenditures by
Q43: We can infer that the government is
Q44: The LM curve is the set of
Q45: Figure 4-4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2645/.jpg" alt="Figure 4-4
Q47: In deriving LM curves,holding the real money
Q48: If the Fed's goal is to hold
Q49: Monetary policy loses its effectiveness in all
Q50: Figure 4-6<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2645/.jpg" alt="Figure 4-6
Q51: In the IS-LM diagram,we are in "general