Those economists who believe that monetary policy is more powerful than fiscal policy argue that the
a. LM curve is vertical.
b. IS curve is horizontal.
c. interest rate elasticity of investment is large.
d. interest rate elasticity of investment is small.
C
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As interest rates rise, the quantity of money demanded
A) falls. B) rises. C) stays the same. D) does not react to interest rate changes.
Which of the following statements is TRUE?
A) A growing economy should see a decline in relative poverty but not in absolute poverty. B) A growing economy should see a decline in absolute poverty but not in relative poverty. C) A growing economy should see a decline in both absolute and relative poverty. D) A growing economy is usually unrelated to changes in either absolute or relative poverty.
Refer to the information provided in Figure 6.3 below to answer the question(s) that follow.
Figure 6.3Refer to Figure 6.3. Molly?s budget constraint is AD. It would swivel to AB if the price of
A. DVDs decreased. B. CDs increased. C. DVDs increased. D. CDs decreased.
A trade deficit occurs for a nation when it:
A. exports more than it imports. B. imports more than it exports. C. receives more foreign currency than it sends out in domestic currency. D. loans out U.S. dollars to foreign buyers of domestically produced goods.