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Author Question: An expected tax cut will tend to cause A) an increase in stock prices. B) a reduction in stock ... (Read 130 times)

TVarnum

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on: Jun 30, 2018
An expected tax cut 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

Suppose investment spending is not very sensitive to the interest rate. Given this information, we know that
 
  A) the IS curve should be relatively flat.
  B) the IS curve should be relatively steep.
  C) the LM curve should be relatively flat.
  D) the LM curve should be relatively steep.
  E) neither the IS nor the LM curve will be affected.


meryzewe

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

B


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TVarnum

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Reply #2 on: Jun 30, 2018
Thank you :)


meryzewe

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Reply #3 on: Jun 30, 2018
Happy to help you


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