A vertical IS curve comes from the assumption that changes in the interest rate do NOT affect
A) money demand.
B) the money supply.
C) autonomous planned spending.
D) the LM curve.
C
You might also like to view...
Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table below shows the reservation prices of the eight students enrolled in the class.StudentReservation Price($/Book)Q60R54S48T42U36V30W24X18 How many books will Campus Books sell if it must charge a single price to all of its customers?
A. 5 B. 7 C. 3 D. 4
A normative economic statement:
a. is a model used to collect data. b. is a statement of fact. c. is a statement of what ought to be, not what is. d. indicates what will occur if certain assumptions are true.
If the government increases defense spending by $1 billion and the MPC is 0.8, how much additional spending will occur in the third “round” of spending?
A. $640 million B. $800 million C. $1 billion D. $1.8 billion
The economy is considered to be at its potential output when the only unemployment is structural or frictional.
Answer the following statement true (T) or false (F)