This topic contains a solution. Click here to go to the answer

Author Question: A liquidity trap occurs when the a. LM curve is steep. b. LM curve is vertical. c. LM curve is ... (Read 92 times)

Davideckstein7

  • Hero Member
  • *****
  • Posts: 555
A liquidity trap occurs when the
 
  a. LM curve is steep.
  b. LM curve is vertical.
  c. LM curve is relatively flat.
  d. IS curve is flat.

Question 2

When automatic fiscal stabilizers are in place, a shock that causes a fall in the level of economic activity automatically
 
  a. results in a decline in the federal budget deficit that lessens the fall in income.
  b. results in a rise in the federal deficit that lessens the fall in income.
  c. requires the federal government to balance the budget.
  d. will lead to a permanent increase in the budget deficit.
  e. both a and b



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

chinwesucks

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

C

Answer to Question 2

B




Davideckstein7

  • Member
  • Posts: 555
Reply 2 on: Jun 30, 2018
Wow, this really help


sarah_brady415

  • Member
  • Posts: 328
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

For a complete list of videos, visit our video library