If interest rates fall without any corresponding change in income, then it is possible according to the IS-LM model that
a. money demand fell and government spending declined.
b. the money supply increased and taxes declined.
c. tight monetary policy and easy fiscal policy.
d. easy monetary policy and easy fiscal policy.
A
You might also like to view...
A decrease in the demand for loanable funds and a leftward shift of the demand for loanable funds curve results from
A) an increase in the real interest rate. B) technological improvements. C) tax cuts. D) decreases in the expected profit.
Suppose a Nintendo Wii has a price of 24,000 yen in Japan and the yen-dollar exchange rate changes from 80 yen to the dollar to 100 yen to the dollar? What happens to the price of the Wii measured in dollars?
What will be an ideal response?
The finite nature of the economy's resource base:
a. will be solved if only we would learn to conserve. b. is only a problem in developing countries. c. will be solved as technology advances. d. will always be with us.
An effective minimum wage will increase the quantity demanded of labor.
Answer the following statement true (T) or false (F)