Assuming the Federal Reserve is targeting the interest rate, a decrease in money demand will
a. shift the LM schedule to the right.
b. shift the LM schedule to the left.
c. shift the IS schedule to the right.
d. not shift the LM schedule.
e. none of the above.
D
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Let's assume producers in Canada can make 200 units of beef or 50 units of oranges, and U.S. producers can make 50 units of beef or 200 units of oranges per time period. Which country faces the lowest opportunity cost of producing beef?
A) The U.S. B) Canada C) Both countries D) Neither country
For each outcome below, tell what type of shift must have taken place in either the aggregate demand curve or the long-run aggregate supply curve
(a) In the short run, the price level is unchanged and output rises. (b) In the long run, the price level declines and output is unchanged. (c) In the long run, the price level rises and output declines.
Today, the Federal Reserve System can contract the money supply by
(a) increasing the discount rate. (b) increasing reserve requirements. (c) selling U.S. Treasury and federal agency securities. (d) engaging in all of the above.
If a German firm owns a U.S.-based firm that is domiciled in the U.S., the combined firm is subject to the corporate tax laws in ________ and income tax laws in ________.
A) Germany; Germany B) Germany; U.S. C) U.S.; Germany D) U.S.; U.S.