The IS curve
A. is vertical.
B. slopes downward.
C. is horizontal.
D. slopes upward.
Answer: B
You might also like to view...
Some baseball parks have a "7th Inning Stretch" where beer, hotdogs and other food items are offered for sale at a lower price
What economic concept is being used by the baseball park to justify this practice? If it is successful at selling more food and drink with this practice why don't they lower prices at the beginning of the game?
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to real GDP and the monetary base in the context of the Three-Sector-Model? a. Real GDP rises and monetary base rises
b. Real GDP rises and monetary base falls. c. Real GDP and monetary base fall. d. Real GDP and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Another term for "economic models" is
A) economic systems. B) economic theories. C) economic science. D) economic institutions.
The figures below illustrate a situation of a trade embargo. In Figure (a) Dd and Sd are the domestic demand and supply curves of the embargoing countries. Prior to the embargo there was free trade at the world price of P0.
As a result of this embargo, the world as a whole loses Area
A. (a + b + c + d). B. (a + c). C. a. D. (b + c).