Solved

In the IS-LM Model, the Impact of an Increase in Government

Question 145

Multiple Choice

In the IS-LM model, the impact of an increase in government purchases in the goods market has ramifications in the money market, because the increase in income causes a(n) ______ in money ______.


A) increase; supply
B) increase; demand
C) decrease; supply
D) decrease; demand

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q135: An increase in the demand for money,

Q136: In the IS-LM model, starting with no

Q137: The LM curve can shift to the

Q138: Use the following to answer questions :<br>Exhibit:

Q139: Other things equal, an expected deflation can

Q140: If expected inflation equals 3 percent and

Q141: The interaction of the IS curve and

Q142: According to the macroeconometric model developed by

Q143: When bond traders for the Federal Reserve

Q144: Use the following to answer questions :<br>Exhibit: