The money demand curve slopes _____
Fill in the blank(s) with the appropriate word(s).
downward because the cost of holding money decreases as the interest rate decreases.
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Any increase in autonomous spending will
A) shift the IS curve to the left. B) shift the IS curve to the right. C) cause a movement down along an IS curve. D) cause a movement up along an IS curve.
In the short-run macro model, which of the following increases when government spending increases?
a. The interest rate b. Investment spending c. Taxes d. Spending on consumer durables e. The money supply
In early 2013, two economists debated the question of whether:
a. the trade deficit should be reduced rapidly or steadily b. the United States was past its prime c. the percentage of health care to GDP was a warning sign for the economy d. none of these
The $/€ bid rate is the:
a. Inverse of €/$ ask rate b. Inverse of €/$ bid rate c. Inverse of $/€ ask rate d. Equal to the €/$ ask rate e. Equal to the €/$ bid rate