In the IS-LM model, the impact of an increase in government purchases in the goods market has ramifications in the money market, because the increase in income causes a(n) ______ in money ______.
Fill in the blank(s) with the appropriate word(s).
increase; demand
You might also like to view...
If the Heckscher-Ohlin model is correct, there would never be intraindustry trade
Indicate whether the statement is true or false
The downward sloping aggregate demand curve can be explained in part through the:
A. wealth effect. B. negative relationship between the price level and net exports. C. negative relationship between the price level and investment spending. D. All of these are true.
If the measured elasticity of supply coefficient equals 0.6, then supply is: a. perfectly elastic. b. elastic
c. unit elastic. d. inelastic.
External benefits are those that accrue:
A. indirectly to the decision maker of a market exchange. B. to the government without its direct intervention. C. without compensation to someone other than the person who caused it. D. directly to the decision maker of a market exchange.