what happens to IS curve when taxes increase? correct answers shifts left
what happens to IS curve when gov spending increases? correct answers shifts right
what happens to IS curve when permanent income increases? correct answers shifts right
what happens to IS curve when stock prices fal...
Econ 402 final || with 100% Errorless Solutions.
what happens to IS curve when taxes increase? correct answers shifts left
what happens to IS curve when gov spending increases? correct answers shifts right
what happens to IS curve when permanent income increases? correct answers shifts right
what happens to IS curve when stock prices fall? correct answers shifts left
what happens to IS curve when corporate taxes increase? correct answers shifts left
money demand is ___ when output is high correct answers high
money demand is ___ when interest rates are high correct answers low
what happens to LM curve when money supply shrinks? correct answers shifts left
what happens to LM curve when money demand decreases? correct answers shifts right
what happens to LM curve when price level decreases? correct answers shifts right
true or false: monetary assets pay a fair amount of interest correct answers false
high output is associated with ____ prices correct answers lower
increase in gov spending causes unemployment to increase or decrease? correct answers decrease
increase in gov spending causes non-durable consumption to increase or decrease? correct
answers increase
increase in gov spending causes interest rate to increase or decrease? correct answers increase
increase in gov spending causes interest-sensitive consumption to increase or decrease? correct
answers decrease or ambiguous
what is the government spending multiplier? correct answers 1/(1-MPC)
What is the tax multiplier? correct answers -MPC/(1-MPC)
what is a good estimate for the government spending multiplier? correct answers 0.6
is fiscal or monetary policy the most viable form of stabilization? correct answers monetary
how many presidents are there from regional federal reserve banks? correct answers 5
, how to the chairman, vice chairman, and the federal governors gain positions at the federal
reserve? correct answers the president appoints them
how many regional federal reserve banks are there? correct answers 12
every $1 increase in total reserves increases the money supply by... correct answers 1/RRR
does buying bonds increase or decrease the money supply? correct answers increase
does selling bonds increase or decrease the money supply? correct answers decrease
what monetary policy instrument is the main instrument of the Fed? correct answers open market
operations
the interest rate for short term loans between banks is called the ___ correct answers federal
funds rate
the interest rate that banks charge their best customers is called the... correct answers prime rate
the rate at which member banks borrow money from the Fed is called the... correct answers
primary credit rate
the primary credit rate is _________ the federal funds rate. correct answers 1% above
the RRR on demand deposits is... correct answers 3%
if RRR decreases, what happens to money supply correct answers increases
a liquidity trap implies a _________ on interest rates correct answers lower bound
if the exchange rate decreases, you can purchase _____ foreign currency for your dollar, making
foreign goods _____, causing NX to ______ correct answers less, more expensive, increase
if the exchange rate increases, you can purchase ______ foreign currency for your dollar, making
foreign goods _____, causing NX to ______ correct answers more, cheaper, decrease
true or false: recessions in France can be addressed by the French central bank correct answers
false
with a floating exchange rate system, which is more effective in increasing Y, monetary or fiscal
policy? correct answers monetary
with a fixed exchange rate system, which is more effective in increasing Y, monetary or fiscal
policy? correct answers fiscal
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