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 121 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
Wow, this really help

Dinolord

  • Member
  • Posts: 313
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Linked alleles tend to be inherited together Linked alleles tend to be inherited together
China’s 8% annual increase in oil consumption China’s 8% annual increase in oil consumption
Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo
Classic Supply - Demand Curve Classic Supply - Demand Curve
Natural Resource Prices, 1850–2010 Natural Resource Prices, 1850–2010
Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ... Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ...
Video: Double Vacuum Process (Illustration No Audio)

For a complete list of videos, visit our video library