Crowding out would not occur if the
A) IS curve is horizontal.
B) IS curve is vertical.
C) LM curve is horizontal.
D) LM curve is vertical
C
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Core CPI is a price index that only looks at the prices of food and energy and ignores the prices of all other goods and services
a. True b. False Indicate whether the statement is true or false
Refer to Figure 10.7. A movement from point C to point A could be caused by
A) a negative demand shock. B) a decrease in the term premium investors expect in the future. C) a decrease in the default-risk premium. D) a decrease in the expected rate of inflation.
When the price system fails to generate an efficient allocation of resources
A) the market will always correct it. B) consumers will spend less. C) business will produce more. D) too few or too many goods will be produced.
The following table shows Alex's estimated annual benefits of holding different amounts of money.Average moneyholdings($)Total benefit($)700508005990066100071110074How much money will Alex hold if the nominal interest rate is 8 percent? (Assume she wants her money holdings to be in multiples of $100.)
A. $900 B. $800 C. $1,000 D. $700