A decrease in the money supply would cause the IS curve to ________ and the LM curve to ________
A) shift down and to the left; be unchanged
B) shift down and to the left; shift up and to the left
C) be unchanged; shift up and to the left
D) be unchanged; shift down and to the right
C
You might also like to view...
Refer to Table 2-19. What is Betty's opportunity cost of making a bench?
A) 2 statues B) 1/2 of a statue C) 2.8 statues D) 1.75 benches
Why are international investors who have invested in developing nations favoring foreign direct investment and portfolio investment over loans?
A) The process of making loans is usually more difficult for investors to do than foreign direct and portfolio investment. B) The interest rate charged on the loans is usually lower than what can be earned in the U.S. C) It is illegal for banks to make loans to foreign firms. D) Investors have an aversion to owning dead capital and want to make sure that the resources they own do not become dead capital.
When a check is cleared against Bank A after being deposited at Bank B, _____
a. both Bank A's and Bank B's liabilities increase b. both Bank A's and Bank B's liabilities decrease c. Bank A's liabilities increase and Bank B's liabilities decrease d. Bank A's liabilities decrease and Bank B's liabilities increase e. there is an increase in the liabilities of the Federal Reserve
The main purpose of federal deposit insurance is to
A. permit the Federal Reserve to control the money supply. B. prevent borrowers who are likely to default on their loans from getting loans in the first place. C. prevent bank panics. D. put savings and loan associations on an equal competitive footing with commercial banks.