The IS-LM model predicts that a temporary beneficial supply shock
A. increases output, national saving, and the real interest rate, but not investment.
B. increases output, national saving, and investment, but not the real interest rate.
C. increases output, national saving, investment, and the real interest rate.
D. increases the real interest rate, investment, and output, but not national saving.
Answer: B
You might also like to view...
A price ceiling imposed below the equilibrium price ______
A. creates a black market in which the price might equal or exceed the equilibrium price B. creates a black market in which the price equals the price ceiling C. leads to increased search activity, which reduces the shortage of the good D. increases the demand for the good, which makes the shortage even larger
A considerable advantage that richer countries have over poorer ones is exemplified by the fact that
A) richer countries do not have to denominate their foreign debts in their own currencies. B) richer countries have the ability to denominate their foreign debts in foreign currencies. C) when demand falls for a poorer country's goods, this leads to a significant wealth transfer from foreigners to the poorer country, a kind of international insurance payment. D) richer countries have the ability to denominate their foreign debts in their own currencies. E) richer countries can extract trade advantages by using military power.
Which of the following is true regarding tacit collusion?
A) It is a formal agreement. B) It is more likely to occur when the price elasticity of demand is small. C) It is more likely to occur when barriers to entry are low. D) It is illegal.
A less-developed country would probably use ___________ to argue for trade restrictions
a. national security b. infant industry c. protection of workers from cheap foreign labor d. antidumping e. increased efficiency