A steep 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.
D
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If a meat packing plant has 30 employees, each employee has a 1 in 90 chance of getting injured on the job, and the cost of treating a job-related injury is $18,000, then the annual cost per injury for each employee is
A) $6.67. B) $200. C) $600. D) $6,000.
The concept of "lender of last resort" is that when
a. lending decreases, the Fed will be the last to resort to higher interest rates. b. borrowing increases, the Fed will be the last to increase lending. c. commercial banks are hesitant to lend, the Fed will step in and increase reserves. d. a borrower has tried everyone else, the Fed will lend directly to them.
Based on the table, the multiplier in this case is ______.
a. 2/3
b. 3
c. 10 billion
d. 30 billion
f the long-term supply curve for rental units becomes more elastic, what will be one of the results of rent controls over the long run?
a. The availability of rentals will remain unchanged. b. Efficiency in the rental property market will increase. c. The number or rentals available will increase. d. Deadweight loss will increase significantly.