If the IS curve is negatively sloped and the LM curve is positively sloped
A) an increase in government expenditures will raise real GDP and lower interest rates.
B) a fall in the real money supply will raise real GDP and lower the interest rate.
C) an increase in taxes and an increase in money supply will lower the interest rate and give little or no change in real GDP.
D) an increase in taxes and a fall in the money supply will raise the interest rate and give little or no change in real GDP.
C
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The purchasing power of money decreases as the price level increases
Indicate whether the statement is true or false
Assume that product X has a positive cross elasticity with respect to shoes. If the price of shoes rises
A) the demand for product X will decrease. B) the quantity demanded for product X will increase. C) the demand for shoes will fall. D) the demand for product X will increase.
The demand for loanable funds curve is downward sloping because
a. as the interest rate falls business firms demand fewer loanable funds b. as the interest rate falls business firms demand more loanable funds c. as the interest rate rises business firms demand more loanable funds d. as the interest rate rises, the government demands more loanable funds e. as the interest rate rises, the government demands fewer loanable funds
The subject of borrowing by the U.S. from its citizens and from other countries, has resulted in one of the fiercest policy debates in recent years
a. True b. False Indicate whether the statement is true or false