Suppose the Fed increases the money supply in the current period ...

[tingc95]

Suppose the Fed increases the money supply in the current period with no other policy change implemented or anticipated. This policy action will cause which of the following shifts in the IS and/or LM curves in the current period?
 
  A) IS left; LM up
  B) IS right; LM up
  C) no shift in IS; LM down
  D) IS left; LM down
  E) IS right; LM down

Question 2

Given the zero lower bound on the nominal rate, the lowest real interest rate the central bank can achieve is
 
  A) - .
  B) .
  C) 0.
  D) i.

[joewallace]

Answer to Question 1

C

Answer to Question 2

A

[tingc95]

Thanks for the timely response, appreciate it

[shailee]

YES! Correct, THANKS for helping me on my review