The LM curve automatically shifts to the right when the intersection point of the IS and LM curves occurs at a point
A) beyond full-employment income.
B) in the liquidity trap.
C) less than full-employment income.
D) where planned saving is less than planned investment.
A
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An implication of scarcity is that:
A. making trade-offs becomes unnecessary as wealth increases. B. people must make trade-offs. C. some people will always be poor. D. people will never be happy.
According to the classical model, prices and wages
A) must be set by government. B) move upward easily, but are "sticky" downward. C) are flexible. D) move downward easily, but are "sticky" upward.
A cash register at a coffee shop should be considered
A. real capital. B. either financial or real capital. C. financial capital. D. none of the choices is correct.
The amount of money available in the economy:
A. is managed by the Federal Reserve. B. varies depending on what is considered money. C. is called the money supply. D. All of these are true.