When the policy rate decreases,
A) IS curve does not change.
B) IS curve shifts to the right.
C) IS curve shifts to the left.
D) LM curve shifts upward.
E) LM curve shifts downward.
A
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A movement along the demand curve for toothpaste would be caused by
A) a change in population. B) a change in the price of toothbrushes. C) a change in consumer income. D) a change in the price of toothpaste.
With an upward sloping LM curve, a falling interest rate __________ money demand, so that an expansionary monetary policy is __________ than in the case of a vertical LM curve
A) raises; stronger B) raises; weaker C) has no effect on; stronger D) has no effect on; weaker
A balance of trade surplus exists when
A. net exports are negative. B. imports exceed exports. C. net exports are positive. D. All of the choices are true.
The record of all transactions with foreign nations that involve the exchange of merchandise goods and services or unilateral gifts is called the
a. capital account. b. current account. c. balance of trade. d. balance of payments.