A change in government spending has a larger effect on income the
a. larger the elasticity of money demand.
b. smaller the elasticity of money demand.
c. steeper the LM curve.
d. flatter the LM curve.
D
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As portrayed in terms of total expenditures (TE) and total production (TP), discuss at least three assumptions that sum up the workings of the simple Keynesian model
To limit political influence on Fed policy, the terms of the Fed Board of Governors are staggered so that one new appointment is made every four years to coincide with the presidential elections
Indicate whether the statement is true or false
Other things being equal, the lower the value of elasticity:
A. the more likely the profitability of a price increase. B. the less likely the profitability of a price increase. C. the greater the responsiveness in quantity demanded to a price change. D. the lower the corresponding increase in firm revenue.
If M is 2,000, Q is 1,000, and P = 6, then V
A. Is 2. B. Is 3. C. Is 6. D. Is 12.