An increase in government spending causes the equilibrium level of aggregate output to ________ at any given interest rate and shifts the ________ curve to the ________, everything else held constant
A) rise; LM; right
B) rise; IS; right
C) fall; IS; left
D) fall; LM; left
B
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As an MNC based in the country of Westeros, suppose your firm currently has positive exposure to the Valerian pound. With expanding input needs, you expect to take on a substantial negative exposure to the Quarthian dollar. The Valerian pound and Qarthian dollar are negatively correlated. As such your firm's overall exchange rate exposure is expected to
The graph shown portrays a subsidy to buyers. Once the subsidy is in place, the buyers pay _____ and the sellers receive ________; the difference is ___________.
A. $24; $40; the amount of the subsidy
B. $30; $46; the amount of the subsidy
C. $40; $24; the amount of the subsidy
D. $24; $40; the amount of government revenue
A US commercial bank can lend 100% of its total reserves
a. true b. false
Assume the price level has risen to 110 and remains constant. Now suppose the economy finds a new equilibrium and that real GDP is at $15.5 trillion. Draw a new aggregate expenditure curve and a new aggregate demand curve to reflect the increase in spending. Indicate the new points of equilibrium with the letter D.
What will be an ideal response?