Suppose that a change in the fiscal/monetary policy mix shifts the IS and LM curves downward by exactly the same amount. The ________ in national saving is accompanied by ________ domestic investment due to the ________ in the interest rate
A) fall, equally lower, lower
B) fall, unchanged, unchanged
C) rise, unchanged, unchanged
D) rise, equally higher, lower
E) rise, equally lower, higher
D
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Historically, most harmful bubbles are characterized by
a. investment in stocks. b. the sale of Treasury bills. c. heaving borrowing. d. reliance on technology.
Assume a company is at a point in production where marginal product is above average product. Which of the following must be true?
A. Marginal product must be rising. B. Diminishing marginal product must not have set in yet. C. Average product must be rising. D. All of these are true.
Which of the following must always be true as the quantity of output increases?
a. Marginal cost must rise. b. Average total cost must rise. c. Average variable cost must rise. d. Average fixed cost must fall.
In 1943-1945
A. there was substantial unemployment in the U.S. B. there was substantial excess plant and equipment in the U.S. C. the U.S. had not yet completed its recovery from the depression. D. the U.S. was temporarily operating at a point beyond the production possibilities frontier.