(Exhibit: IS-LM Monetary Policy) Based on the graph, starting from equilibrium at interest rate r1 and income Y1, a decrease in the money supply would generate the new equilibrium combination of interest rate and income:
What will be an ideal response?
r2, Y2
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According to this Application, if you earn a salary of $40,000 in the first year and all prices triple in the next 10 years, what will your nominal annual salary be in 10 years?
A) $20,000 B) $60,000 C) $120,000 D) $180,000
Adam Smith noted that when public expenditures are undertake for the general benefit of everyone in a society then _____
a. there is considerable conflict between the benefit principle and the ability-to-pay principle b. there is no conflict between the benefit principle and the ability-to-pay principle c. the benefit principle provides little guide to tax policy d. the ability-to-pay principle provides little guide to tax policy
If a firm produces a good and then adds it to its inventory rather than selling it, for the purposes of GDP accounting the firm is considered to have "purchased" the good so it will count as part of that period's investment expenditures
a. True b. False Indicate whether the statement is true or false
Increased productivity in the agricultural sector is not always a benefit to farmers because it is accompanied by
A) lower prices and if demand is inelastic, lower prices mean lower revenues. B) higher prices and if demand is elastic, higher prices mean lower revenues. C) lower prices and if demand is elastic, lower prices mean lower revenues. D) higher prices and if demand is inelastic, higher prices mean lower revenues.