An expansionary monetary policy shifts the LM curve to the ________, reducing ________, everything else held constant
A) left; output and increasing interest rates
B) left; both real output and interest rates
C) right; both interest rates and real output
D) right; interest rates and increasing real output
D
You might also like to view...
Federally provided agricultural subsidies in the United States have ________ with the passage of the 2002 Farm Security Act and the 2007 Food, Security, and Bioenergy Act
A) been abolished B) been maintained C) increased to the level of EU price supports D) been made a function of tax revenues
Since World War II, the share of total income going to the bottom 20 percent of U.S. households has
A) fallen by 20 percent. B) increased by 10 percent. C) remained constant. D) more than doubled.
The following is an example of adverse selection
a. A majority of those applying for well paid jobs are well qualified b. More reckless drivers opt for cars with more safety devices c. Individuals living in less secure neighborhoods want to buy less insurance d. Individuals with a strong family history of heart diseases opt to buy less insurance
In the income-expenditure model, if autonomous saving increases by $15 billion, _____
a. the aggregate expenditure line shifts upward by $15 billion b. planned investment increases by $15 billion c. the aggregate expenditure line shifts downward by $15 billion d. planned investment decreases by $15 billion e. the equilibrium level of real GDP demanded decreases by $15 billion