The curve that illustrates the positive relationship between the equilibrium values of aggregate output and the interest rate in the money market is the ? A. money supply curveB. LM curve C. money demand curve D. IS curve
Each point on the IS curve represents the equilibrium point in the ? A. goods market for the given interest rate B. goods market for the given level of government spending C. money market for the given level of the…
The way in which government spending is supposed to reduce investment is by increasing ? A. incomes B. overseas investment C. importsD. interest rates
The idea the government spending causes a reduction in private investment is called ? A. fiscal drag B. investment blightC. crowding-out D. the Thatcher effects
If The Central bank tries to keep the interest rate constant when the economy is operating on the steep part of the AS curve, _________ will occur? A. a hyperinflation B. a depression C. stagflation D. a recession
If the investment demand curve is vertical ? A. both monetary and fiscal policy are ineffective B. monetary policy is effective but fiscal policy is ineffectiveC. monetary policy is ineffective but fiscal policy is effective D. both monetary and fiscal…
An example of an expansionary monetary policy is ? A. a reduction in the taxes banks pay on their profits. B. an increase in the required reserve ratio C. an increase in the discount rateD. the Central bank buying government…
The interest rate is determined in ? A. the money and labor markets B. the goods and labor markets C. the goods marketD. the money markets
The equilibrium level of aggregate output is determined in ? A. the goods and labor markets.B. the goods market C. the money markets D. the money and labor market
The demand for money represents the idea that there is ? A. a positive relationship between the interest rate and the quantity of money demanded B. a negative relationship between the price level and the quantity of money demanded C.…