You have just read that the Federal Reserve has increased the money supply to avoid a recession. For a given price level, you would expect the LM curve to
A. shift down and to the right as the real money supply falls.
B. shift up and to the left as the real money supply falls.
C. shift up and to the left as the real money supply rises.
D. shift down and to the right as the real money supply rises.
Answer: D
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For a common resource, the marginal private cost curve slopes ________ and the marginal social cost curve slopes ________
A) upward; upward B) upward; downward C) downward; upward D) downward; downward
A demand curve is said to be inelastic if:
a. ED = 1 b. ED = 0 c. ED > 1 d. ED < 1
When there is an increase in the real interest rate in Japan, the Japanese yen will depreciate
a. True b. False Indicate whether the statement is true or false
Extrapolative expectations are expectations that:
A. are consistent with economists' expectations. B. a trend will continue. C. a trend will reverse. D. are consistent with trending expectations.