An increase in the money supply must cause which of the following?
A) a leftward shift in the IS curve
B) a reduction in the interest rate and ambiguous effects on investment
C) an increase in investment and a rightward shift in the IS curve
D) no change in the interest rate if investment is independent of the interest rate
E) no change in output if investment is independent of the interest rate
E
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Because oil price increases reduce the consumption of oil, this discourages the development of oil substitutes
Indicate whether the statement is true or false
If the income elasticity of demand for a Miami Dolphins season ticket is 2.34, then are Dolphins season tickets a normal or an inferior good?
What will be an ideal response?
Governments can increase the consumption of a product that creates positive externalities by
A) taxing the production and consumption of the product. B) subsidizing the production of the product so that the supply is increased and market price is reduced. C) convincing everyone to consume the product. D) assigning property rights to the producers of the product.
In many countries, an exchange-rate peg substitutes for ________
A) speculative attacks B) an export-oriented sector C) discretionary monetary policy D) capital controls