Assuming perfect capital mobility and a fixed exchange rate, then an increase in government spending shifts
a. the IS schedule only.
b. both the IS and LM schedules to the left.
c. both the IS and LM schedules to the right.
d. the LM schedule to the left and the IS schedule to the right.
C
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If a central bank attempts to lower the inflation rate but the public doesn't believe the inflation rate will fall as far as the central bank says, then in the short run unemployment
a. rises. As inflation expectations adjust, the short-run Phillips curve shifts right. b. rises. As inflation expectations adjust, the short-run Phillips curve shifts left. c. falls. As inflation expectations adjust, the short-run Phillips curve shifts right. d. falls. As inflation expectations adjust, the short-run Phillips curve shifts left.
Suppose $1 = 1.5 euros in London and $1 = 1.2 euros in New York. Which of the following would be the right trade for you to make money?
a. You sell 1,000 euros in London and buy euros in New York. b. You sell dollars in New York and buy dollars in London. c. You sell dollars in London and buy dollars in New York. d. You sell euros in London and buy dollars in New York.
Which of the following statements is not correct regarding taxes?
A. The largest source of state and local governments tax revenue is sales and excise taxes. B. The largest source of federal government tax revenue is individual income taxes. C. A sales tax on food is a regressive tax. D. A proportional tax is equal to a fixed dollar amount.
If Tesla is thinking about building a new factory, it is making a
A. Long-run decision that may enhance its profit. B. Short-run decision that will definitely enhance its profit. C. Short-run decision that may enhance its profit. D. Long-run decision that will definitely enhance its profit.