With unstable commodity demand and thus an unstable ________ curve, fluctuations in output are ________ by the fortuitous selection of ________ targeting
A) LM, minimized, money supply
B) LM, eliminated, interest rate
C) LM, minimized, interest rate
D) IS, minimized, money supply
E) IS, eliminated, interest rate
D
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If the average cost of transporting a passenger on the train from Chicago to St. Louis is $75, it would be irrational for the railroad to allow any passenger to ride for less than $75
a. True b. False Indicate whether the statement is true or false
Consider a profit-maximizing monopoly pricing under the following conditions. The profit-maximizing price charged for goods produced is $12.The intersection of the marginal revenue and marginal cost curves occurs where output is 10 units and marginal cost is $6 . The socially efficient level of production is 12 units. The demand curve and marginal cost curves are linear. What is the value of the
deadweight loss created by the monopolist? a. $4 b. $6 c. $12 d. $16
When actual output is less than potential output there is a(n):
A. trade deficit. B. budget deficit. C. recessionary gap. D. budget surplus.
?Suppose that government purchases of goods and services increase by $200 and at the same time lump-sum taxes increase by $200. Which of the following is true in this case?
a. The budget deficit will decrease as the economy expands. b. ?There will be no change in the budget deficit. c. ?Whether the budget deficit will increase or decrease will depend on the value of the marginal propensity to consume. d. ?The budget deficit will increase by $200. e. ?The budget deficit will increase by $400.