In the context of the money market and the LM curve, which of the following is true? O The LM is steep when the sensitivity of money demand to changes in income is large Points left and above a given LM reflect excess demand for money OA decrease in the money supply shifts the LM curve down' to the right The slope of the LM is determined by the sensitivity of investment to changes in interest rates

In the context of the money market and the LM curve, which of the following is true? O The LM is steep when the sensitivity of money demand to changes in income is large Points left and above a given LM reflect excess demand for money OA decrease in the money supply shifts the LM curve down' to the right The slope of the LM is determined by the sensitivity of investment to changes in interest rates

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please explain correct and incorrect option The IS curve illustrates that when income increases,The IS curve illustrates that when income increases, Multiple Choice: the interest rate must fall to restore equilibrium in the asset market. interest rate must fall to restore equilibrium in the goods market. interest rate must rise to restore equilibrium in the goods market. interest rate must rise to restore equilibrium in the asset market. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
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QUESTION 5 "Suppose the parameters of the IS curve are a=0,b=3/4, and r= 29%. Suppose further that initially the real interest rate R-2%. Draw the diagram for the IS curve and recall ""a"" is a collection of terms (aC, aG, and so on). Suppose the real interest rate rises by 2 percentage points, from 2% to 4%. What will happen to SRO?" O Decrease by 1 percentage point Increase by 1 percentage point Decrease by 2 percentage points Increase by 2 percentage points Decrease by 1.5 percentage points Increase by 1.5 percentage points 000 QUESTION 6 "Suppose the parameters of the IS curve are a 0,b=3/4, and r = 2%. Suppose further that initially the real interest rate R-2%. Draw the diagram for the IS curve and recall ""a"" is a collection of terms (aC, aG, and so on). Suppose the government announces a temporary elimination of the sales tax. As a result, aC increases by 1 percentage point, from 70% to 71%. Assuming the Fed keeps interest rates constant, what will happen to SRO?" Decrease by 1…
In neoclassical economics, the tendency to full employment depends on: O perfectly flexible wages O perfect competition in all markets, including factor markets O perfectly flexible interest rates O All of these
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Using a bar chart, when prices are rising, what do falling volume and open interest indicate regarding the uptrend in prices? O Can't say from the information provided The current uptrend in prices may continue The current uptrend in prices is going to become constant at a certain level The current uptrend in prices may be coming to an end None of the above
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these multiple choice Questions from MACROECONOMICS Course.I need the final answer,please.
A. Given: C = 700 + .80 (1- t)Y, t=0.25 I = 210 -75i; G= 1000; TR=100 L= 0.20Y- 40i ; M/P = 800 B. Compute:1. The equilibrium income and the equilibrium interest rate2. Show the graph of the IS -LM equilibrium3. If G is increased to 1,500, what will be the new level of equilibrium income and interest rate? What happens to the IS curve?4. If tax rates is increased to 0.35, what will be the new level of equilibrium income and interest rate? What happens to the IS Curve?5. If M/P is increased to 900, what will be the new level of equilibrium income and interest rate? What happens to the LM curve?6. Given the simulated values of equilibrium incomes and interest rates, whatexplanation can you offer on such changes? On its impact in our economy?
Which of the following statements is correct? Expansionary gap remedy is a lower interest rate Overvalued currency remedy is a lower interest rate O Overvalued currency remedy isa higher interest rate O Undervalued currency remedy is a higher interest rate
1. A change in autonomous spending results to a shift of the LM curve either to the left or right. O a. False; movement along the IS curve O b. False; movement along the LM curve O c. True O d. False; shift of the IS curve 2. Which of the following statements is true? 3. O a. The goods and money markets can never be in equilibrium. O b. The goods and money markets are in equilibrium at the points where the money market is in equilibrium. O c. The goods and money markets are in equilibrium at their point of intersection only. O d. The goods and money markets are in equilibrium at the points where the goods market is in equilibrium. Which of the following describes the steepest investment schedule? O a. 1-450-8(3) O b. 1=450-2(3) O c. 1=450-9(3) O d. 1=450-5(3)