The IS curve becomes steeper if there is __________ in the interest-sensitivity of __________ demand
A) an increase; money
B) an increase; investment
C) a decrease; money
D) a decrease; investment
D
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We say that individuals get a "warm glow" from giving to a public good if they not only get utility from the public good but also from giving itself. Explain the following: "While warm glow lessens the free rider problem, it cannot eliminate it."
What will be an ideal response?
All economically efficient production plans are technologically efficient.
Answer the following statement true (T) or false (F)
Primary dealers are those
A) permitted to trade directly with the Fed. B) who work under the account manager at the Federal Reserve Bank of New York. C) who specialize in selling bonds to small private investors. D) responsible for assuring that interest rates do not decline unless the FOMC has given specific instructions that they decline.
According to the new classical economics, changes in monetary policy will only impact GDP if:
a. they impact the price level. b. they are unpredictable. c. people have perfect information about these shocks. d. None of the above.