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

Economics

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If the Heckscher-Ohlin model is correct, there would never be intraindustry trade

Indicate whether the statement is true or false

Economics

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.

Economics

If the measured elasticity of supply coefficient equals 0.6, then supply is: a. perfectly elastic. b. elastic

c. unit elastic. d. inelastic.

Economics

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.

Economics