From an initial IS-LM equilibrium with a normally-sloped IS curve and a vertical LM curve, the money supply increases. A the new IS-LM equilibrium we have
A) higher income and a lower interest rate.
B) higher income and an unchanged interest rate.
C) an unchanged income and a lower interest rate.
D) lower income and an unchanged interest rate.
E) an unchanged income and a higher interest rate.
A
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Q: How many economists does it take to change a light bulb?
A: All. Because then you will generate employment, more consumption, moving the aggregate demand curve to the right. This joke represents the view of A) classical economists. B) economists who contend that money illusion never occurs. C) Keynesian economists. D) economists who conclude that wages and prices are very flexible.
Which of the following is likely to lead to an increase in the gross domestic product of a country?
A) An increase in the tax rates in the country B) An increase in the interest rate in the country C) An increase in the capital stock of the economy D) An increase in the unemployment rate in the country
A chemical factory and a fishing club share a lake. The marginal social costs, private marginal costs, and marginal benefits from producing chemicals are in the figure above
The chemicals dumped into the lake have always harmed the fish, but now they begin to damage the fishing boats as well. As a result, the A) marginal social cost curve shifts leftward. B) marginal social cost curve shifts rightward. C) marginal benefit curve shifts leftward. D) marginal benefit curve shifts rightward.
The law of diminishing returns applies to which of the following segments of the marginal product of labor curve?
a. The point where labor input is zero. b. The downward-sloping segment only. c. The entire curve. d. The upward sloping segment only.