« previous next »

Author Question: Explain what effect an increase in future expected output will have on the IS curve and LM curve in ... (Read 124 times)

sabina

  • Hero Member
  • *****
  • Posts: 563
on: Jun 30, 2018
Explain what effect an increase in future expected output will have on the IS curve and LM curve in the current period.
 
  What will be an ideal response?

Question 2

Which of the following are reported as liabilities on a bank's balance sheet?
 
  A) reserves
  B) checkable deposits
  C) consumer loans
  D) deposits with other banks


jordangronback

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jun 30, 2018
Answer to Question 1

An increase in Ye will cause human wealth to be higher. Individuals will increase their current consumption and the IS curve will shift right. An increase in Ye will also cause firms to increase their expectations of future expected profits. When this occurs, the discounted present value of future profits is higher causing I to increase. As I increases, the IS curve shifts right. This will have no effect on the LM curve.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

sabina

  • Hero Member
  • *****
  • Posts: 563
Reply #2 on: Jun 30, 2018
Thank you


jordangronback

  • Sr. Member
  • ****
  • Posts: 339
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Urine output. Urine output.
When the exhaust is rich, the output of a zirconia oxygen sensor is above 450 mV. When the exhaust is rich, the output of a zirconia oxygen sensor is above 450 mV.
Effect of antidiuretic hormone deficiency. Effect of antidiuretic hormone deficiency.
J or U dose-response curve J or U dose-response curve
Increase in Surface Area by Mechanical Weathering Increase in Surface Area by Mechanical Weathering
Smoking’s effect on lungs Smoking’s effect on lungs
Video: Action potentials - electrical characteristics and generation

For a complete list of videos, visit our video library