A temporary supply shock, such as a bumper crop, would
A. shift the FE line to the left and shift the IS curve up and to the right.
B. shift the FE line to the left and leave the IS curve unchanged.
C. shift the FE line to the right and leave the IS curve unchanged.
D. have no effect on the FE line.
Answer: C
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A. 15,000 B. 17,000 C. 16,000 D. 2,000
Nonactivists believe that ________
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A reliable indicator of a healthy economy is a stable currency
a. True b. False
Which of the following changes is most likely to happen when there is a decrease in the supply of money in a market that was initially in equilibrium?
What will be an ideal response?