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

Author Question: Suppose policy makers implement an unexpected fiscal expansion. Further assume that monetary policy ... (Read 73 times)

WWatsford

  • Hero Member
  • *****
  • Posts: 539
    • Biology Forums!
on: Jun 30, 2018
Suppose policy makers implement an unexpected fiscal expansion. Further assume that monetary policy is expected to keep interest rates constant in response to this unexpected fiscal expansion. Given this information, we would expect that
 
  A) stock prices will rise.
  B) stock prices will remain constant.
  C) this policy will have an ambiguous effect on stock prices.
  D) the effect on stock prices will depend on the slope of the IS curve.

Question 2

The IS curve represents
 
  A) the single level of output where the goods market is in equilibrium.
  B) the single level of output where financial markets are in equilibrium.
  C) the combinations of output and the interest rate where the money market is in equilibrium.
  D) the combinations of output and the interest rate where the goods market is in equilibrium.
  E) none of the above


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cat123

  • Sr. Member
  • ****
  • Posts: 310
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

D


WWatsford

  • Member
  • Posts: 539
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

Jossy

  • Member
  • Posts: 336
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Humanmade pollutants may be driving the expansion of the Earth’s tropical belt seen Humanmade pollutants may be driving the expansion of the Earth’s tropical belt seen
Generally, the total tax burden in the United States is much lower than that of other industrialize Generally, the total tax burden in the United States is much lower than that of other industrialize
Expansion Ratios for Liquefied Compressed Gases Expansion Ratios for Liquefied Compressed Gases
Suppose a country imports televisions. The country's supply and demand curves are shown in ... Suppose a country imports televisions. The country's supply and demand curves are shown in ...
For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately
Key foreign policy agencies Key foreign policy agencies
Video: Subunits of DNA And Semi Conservative Replication

For a complete list of videos, visit our video library