A decline in the money ________ shifts the LM curve to the ________, causing the interest rate to rise and output to fall, everything else held constant
A) demand; right
B) demand; left
C) supply; right
D) supply; left
D
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Consider the following data for a closed economy:
a. Y = $12 trillion b. C = $8 trillion c. I = $3 trillion d. TR = $2 trillion e. T = $3 trillion Use the data provided to calculate the level of private saving and the level of public saving and demonstrate their relationship to investment.
In the aggregate expenditures model, if aggregate expenditures (AE) equal $4 trillion and GDP equals $3 trillion, then:
A. inventory depletion equals ?$1 trillion. B. inventory accumulation equals $1 trillion. C. investment equals ?$1 trillion. D. investment equals $1 trillion.
Which of the following assets is most liquid?
A. funds in a checking account B. a car C. a home D. a municipal bond
Refer to the above figure. The long-run average cost curve and the long-run marginal cost curves represent
A. the cost curves for a natural monopoly. B. a situation where a firm has control over the raw materials. C. a situation where a firm has a patent. D. the cost curves for a competitive firm.