The IS curve plots for each level of income the ________ that causes income to equal ________
A) interest rate, planned expenditures
B) interest rate, planned autonomous spending
C) planned autonomous spending, planned expenditures
D) planned autonomous spending, planned autonomous spending
A
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During the middle of the 2000s, the price of gasoline soared and there was a movement to switch to fuels made from a mixture of gasoline and ethanol. Ethanol can be made from corn
The price of corn skyrocketed and then, after a couple of years, the price decreased. What might have led to these price changes in the corn market?
Refer to Figure 27-9. Given that the economy has moved from point A to point B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?
A) decrease the money supply B) increase government spending C) increase interest rates D) increase taxes
Which of the following falls when bond prices rise?
a. Stock prices. b. Interest rates. c. Money demand. d. Money supply.
The largest part of gross domestic product in the United States is
a. investment. b. consumption. c. government expenditure. d. trade balance.