Multiple Choice
A flat LM curve implies that
A) an increase in government spending will change output by a relatively small amount.
B) a decrease in taxes will change output by a relatively small amount.
C) changes in government spending and taxes will have a large multiple effect on output.
D) A and B.
Correct Answer:
Verified
Correct Answer:
Verified
Q23: If spending is NOT responsive to changes
Q24: A vertical IS curve comes from the
Q25: From any point above the current LM
Q26: A "easy" money,tight "fiscal" policy combination will
Q27: If the interest rate were to rise,we
Q29: One of the major chains of causation
Q30: The money supply is controlled by the<br>A)New
Q31: With normally-sloped IS and LM curves,an increase
Q32: Given the level of real GDP,the equilibrium
Q33: A flat IS curve implies that<br>A)an increase