b. If no policy is used to restore full employment, the interest rate and the price level will ? fall, raise or stay the same. choose one Since the long-run interest rate will be? lower or stay the same choose one investment will be? lower or larger. choose one If fiscal policy is used, the IS or LM curve will shift to the left or right. choose one The price level will fall or not change choose one but the long-run interest rate will either increase or decrease. choose one This will either reduce or increase (which one) the amount of private investment at the new equilibrium, at either a or b or c. choose one
b. If no policy is used to restore full employment, the interest rate and the price level will ? fall, raise or stay the same. choose one Since the long-run interest rate will be? lower or stay the same choose one investment will be? lower or larger. choose one If fiscal policy is used, the IS or LM curve will shift to the left or right. choose one The price level will fall or not change choose one but the long-run interest rate will either increase or decrease. choose one This will either reduce or increase (which one) the amount of private investment at the new equilibrium, at either a or b or c. choose one
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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b. If no policy is used to restore full employment, the interest rate and the
Since the long-run interest rate will be? lower or stay the same choose one
investment will be? lower or larger. choose one
If fiscal policy is used, the IS or LM curve will shift to the left or right. choose one
The price level will fall or not change choose one but the long-run interest rate will either increase or decrease. choose one
This will either reduce or increase (which one) the amount of private investment at the new equilibrium, at either a or b or c. choose one
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