Suppose that changes in the interest rate have absolutely no effect on the demand for money. The resulting ________ LM curve causes monetary policy to have ________ effect in changing income
A) horizontal, no
B) horizontal, an unusually strong
C) vertical, no
D) vertical, an unusually strong
D
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All of the following statements about the United States are true EXCEPT:
A) The largest imports are services like royalties, license fees, and financial services, and the largest exports are goods like crude oil, automobiles, and clothing. B) The United States is the world's largest international trader. C) The United States imports more than it exports. D) Services account for a larger portion of U.S. exports than U.S. imports. E) Imports are a larger percentage of total expenditure than exports are a percentage of total production.
An autonomous easing of monetary policy results in a ________ level of equilibrium output, shifting the aggregate demand curve to the ________
A) higher; right B) lower; right C) higher; left D) lower; left
At what U.S. unemployment rate do most economists believe full employment occurs?
a. 0 percent b. between 1.5 and 2.0 percent c. between 4.5 and 5.0 percent d. between 5.5 and 6.0 percent e. between 7.5 and 8.0 percent
Gross Domestic Product is best described as the
a. measure of a nation's total economic welfare. b. national income, including nonmarket income. c. sum of money values of all final output produced in the domestic economy within the year. d. national output minus environmental damage.