In the IS-LM model, we can be at natural real GDP with a low interest rate given the combination of ________ fiscal policy and ________ monetary policy

A) tight, tight
B) tight, easy
C) easy, tight
D) easy, easy


B

Economics

You might also like to view...

If inflation is underestimated by decision makers in the economy when it is rising, the SRAS curve will tend to be: a. vertical

b. horizontal. c. downward sloping. d. upward sloping.

Economics

Exchange rates vis-a-vis the U.S. dollar have changed little over time

a. True b. False Indicate whether the statement is true or false

Economics

Answer the following statement(s) true (T) or false (F)

1. If the marginal propensity to save is 0.25 in an economy with no taxes and no imports, the marginal propensity to consume is 1.25. 2. Between 2003 and 2010, the unemployment rate in Ft. Myers, Florida, decreased from 13% to 3%. 3. Inventories are counted as investment because inventories are a source of future sales. 4. In a simple economy with no taxes, government spending, exports, or imports, if disposable income increases by $500 and $450 is consumed, $950 is saved.

Economics

This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope.The marginal cost of litter removal ________ due to ________.

A. decreases; diminishing returns to inputs B. increases; increasing opportunity costs C. increases; the Coase Theorem D. decreases; gains from specialization

Economics