Changes in all of the following shift the LM curve except a. ...

[casperchen82]

Changes in all of the following shift the LM curve except
 
  a. the price level.
  b. income.
  c. the money supply.
  d. money demand.
  e. all of the above shift LM curve.

Question 2

If the Fed has the discretion to choose its policy and announces a low inflation policy, then
 
  a. the public is likely to discount this claim because the Fed has an incentive to change their policy in the future.
  b. the public is likely to believe this claim because the Fed has no incentive to change their policy in the future.
  c. the Fed will always cheat and increase inflation in the future.
  d. the Fed will have to keep inflation lower in the future or they will be voted out of office.
  e. none of the above.

[Dunkey]

Answer to Question 1

B

Answer to Question 2

A

[casperchen82]

TYSM

[Alyson.hiatt@yahoo.com]

Gracias!