A flat IS curve implies that
A) an increase in money supply will change output by a relatively small amount.
B) a decrease in taxes will change output by a relatively large amount.
C) changes in money supply will have large multiplier effects on output.
D) A and B.
C
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In new growth theory, growth in real GDP per person occurs because
i. human capital grows indefinitely. ii. technology advances as a result of choices individuals make. iii. profit incentives encourage technological change. A) i only B) ii only C) iii only D) both i and iii E) i, ii, and iii
Expansionary monetary policy causes a ________ the MP curve and a ________ the aggregate demand curve
A) movement to the right along; shift to the right of B) downward shift of; shift to the right of C) movement to the left along; movement down along D) upward shift of; shift to the right of
The production possibilities frontier is a diagram that shows:
a. the productively efficient combinations of two products that an economy can produce given the resources it has available. b. the productively efficient combinations of two products that can be produced on a worldwide basis given demand. c. the productively inefficient combinations of a single product that an economy can produce given the resources it has available. d. the productively efficient combinations of two products that an economy can produce regardless of if the resources are available.
Which statement is true?
A. Actual reserves - required reserves = excess reserves. B. Required reserves - actual reserves = excess reserves. C. Required reserves + actual reserves = excess reserves. D. None of the statements are true.