This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: An unexpected reduction in the money supply will tend to cause A) an increase in stock prices. ... (Read 88 times)

vinney12

  • Hero Member
  • *****
  • Posts: 586
on: Jun 30, 2018
An unexpected reduction in the money supply will tend to cause
 
  A) an increase in stock prices.
  B) a reduction in stock prices.
  C) no change in stock prices.
  D) an ambiguous effect on stock prices.

Question 2

What is the IS relation? Explain why IS curve is downward sloping.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ttt030911

  • Sr. Member
  • ****
  • Posts: 315
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

The IS relation shows the combinations of the interest rate and the level of output that are consistent with equilibrium in the goods market. An increase in the interest rate leads to a decline in output. Consequently, the IS curve is downward sloping.


vinney12

  • Member
  • Posts: 586
Reply 2 on: Jun 30, 2018
Excellent

bassamabas

  • Member
  • Posts: 294
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Primates in the New World tend to be small-bodied compared to those elsewhere. Primates in the New World tend to be small-bodied compared to those elsewhere.
The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha
Marginal Supply - Demand Curve Marginal Supply - Demand Curve
Oil supply and prices affect the economies of nations Oil supply and prices affect the economies of nations
Stock Market Question Stock Market Question
Video: Rh blood type and complications during pregnancy & Fertilization

For a complete list of videos, visit our video library