Suppose there is a simultaneous reduction in expected future output and reduction in the future expected interest rate. This will cause which of the following to occur?
A) the IS curve to shift left in the current period
B) the IS curve to shift right in the current period
C) the LM curve to shift up in the current period
D) the LM curve to shift down in the current period
E) an ambiguous effect on the position of the IS curve in the current period
E
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Milk can be used to make yogurt and cheese, other things equal, if consumption starts demanding more yogurt
a. Supply of milk will decrease. b. Demand of milk will increase. c. Answer was NONE are
To move quickly to turn around the crisis during 2007-2008, the U.S. Federal Reserve relied on:
a. lowering taxes. b. removing restrictions on collateral, adding more categories of securities purchased by the Federal Reserve, and expanding its operations with nonbank dealers. b. tightening up credit rules and keeping banks out of trouble. d. admonishing the administration for its excessive debt situation.
Assume the graph shown shows Bobbi's budget constraint. If hairbands cost $5, then Bobbi's income to spend on these two items must be:
A. $8. B. $40. C. $6. D. Cannot be determined without more information.
Which of the following is a result of a market economy?
A) environmental protection B) an equal income distribution C) agreement on equity D) voluntary exchange