In the ISLM framework, an expansionary monetary policy causes aggregate output to ________ and the interest rate to ________, everything else held constant

A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase


B

Economics

You might also like to view...

If Eric expects to earn more income next month, he may choose to a. save more now and spend less of his current income on goods and services. b. save less now and spend more of his current income on goods and services. c. decrease his current demand for goods and services

d. decrease his current demand for goods and services.

Economics

Select the graph below that best shows the change in the market specified in the following situation: In the market for chicken, when the price of a substitute, such as beef, decreases

Assume that the graphs show a competitive market for the product stated in the question.



A. Graph A
B. Graph B
C. Graph C
D. Graph D

Economics

Scarcity implies that people must

A. make choices. B. be selfish. C. earn as much as income as they are able to. D. be irrational.

Economics

One possible benefit of a monopoly is:

a. a more efficient allocation of resources; only one firm is needed to supply quantity demanded. b. greater incentives for research due to long-run positive economic profits. c. the government is better able to ensure that it follows laws and guidelines because there is only one firm to monitor. d. goods and services are provided at a lower price than under perfect competition because of a monopoly's decreasing average cost curve.

Economics