Suppose there is an increase in the expected future interest rate. This will cause which of the following to occur?
A) the IS curve to shift left in the current period
B) the IS curve to shift right in the current period
C) the LM curve to shift up in the current period
D) the LM curve to shift down in the current period
A
You might also like to view...
Sports announcers often refer to a baseball batter in a hitting slump as "being due." If they are correct, then it must be the case that
A) a batter's hits are randomly distributed. B) a batter's at-bats are related to each other. C) a batter's at-bats are independent of each other. D) baseball players are acting irrationally.
When increases in the demand for food—shown as rightward shifts in the demand curve— are relatively small when compared to the increases in food supply—shown as rightward shifts in the supply curve—equilibrium price
a. rises and equilibrium quantity falls b. falls and equilibrium quantity falls c. rises and equilibrium quantity rises d. falls and equilibrium quantity rises e. and equilibrium quantity stay the same
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.
Foreign portfolio investment is sometimes called hot money because:
A. it is often invested in the assets which yield the highest returns in the world. B. earnings often go untaxed by the home government. C. it can be withdrawn from a country very quickly. D. it is very difficult to trace.