Suppose individuals expect that interest rates will decrease in the future. Also assume that the Fed wants to prevent any change in current output. Given this goal of the Fed, the Fed should implement a policy in the current period that
A) shifts the IS curve rightward.
B) shifts the IS curve leftward.
C) shifts the IS curve leftward and the LM curve upward.
D) shifts the LM curve upward.
E) shifts the LM curve downward.
D
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Demand relates the amounts of a good purchased to
A) the amounts actually obtained. B) the gross domestic product. C) the quantity needed. D) the sacrifices required to obtain the good. E) the time required to produce the good.
When a single candidate is chosen by majority vote in a democracy, the political systems _____
a. tend to become corrupted b. tend to be two-party systems c. tend to be one-party systems d. tend to be three-party systems
A firm is a ______ when it can sell as much as it wants at some given price P, but nothing at any higher price.
A. monopoly B. oligopoly C. price taker D. price setter
Which of the following events would shift money demand to the left?
a. an increase in the price level b. a decrease in the price level c. an increase in the interest rate d. a decrease in the interest rate