Based on our understanding of the IS-LM model that takes into account dynamics, we know that an increase in the money supply will cause
A) an immediate increase in i and no initial change in Y.
B) an immediate decrease in i and no initial change in Y.
C) a gradual decrease in i and gradual increase in Y.
D) none of the above
B
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A constant-elasticity demand function can be obtained by:
A) taking the logarithm of the dependent variable only. B) taking the logarithm of the independent variable(s) only. C) taking the logarithm of the dependent and independent variable(s). D) taking the reciprocal of the dependent variable(s).
Suppose a tax is imposed on each new hearing aid that is sold. The supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. As a result of the tax, the equilibrium quantity of hearing aids decreases from 10,000 to 9,000 . and the deadweight loss of the tax is $60,000 . We can conclude that the tax on each hearing aid is
a. $60. b. $120. c. $160. d. $200.
As labor productivity increases, which of the following shifts in the labor market should occur?
A. Supply of labor should shift to the left. B. Demand for labor should shift to the right. C. Demand for labor should shift to the left. D. Supply of labor should shift to the right.
Refer to the graphs shown. The effect of an increase in price on demand is best shown by which arrow?
A. A B. B C. C D. D