"Partial" crowding out of fiscal policy occurs when the
A) LM curve is horizontal.
B) LM curve is upward-sloping.
C) LM curve is vertical.
D) IS curve is vertical.
B
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A decrease in the supply of dollars and a decrease in the demand for Indian rupees
A. decreases the rupee price of dollars. B. does not change the exchange rate between dollars and rupees. C. increases the dollar price of rupee. D. decreases the dollar price of rupee.
Which statement concerning the kinked demand curve model of oligopoly is false?
A. It addresses the question of price "stickiness." B. It assumes when one oligopoly raises the price, all others will follow. C. The portion of the demand curve above the "kink" is more elastic than the portion below. D. The firm's marginal costs can sometimes shift without changing the profit-maximizing price and output.
When __________________, a firm will supply a higher quantity at any given price for its output, and the supply curve will shift to the right.
A. prices rise B. equilibrium is achieved C. costs of production fall D. there is a population increase
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline