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

Author Question: Suppose policy makers implement an unexpected fiscal expansion. Further assume that monetary policy ... (Read 153 times)

WWatsford

  • Hero Member
  • *****
  • Posts: 539
    • Biology Forums!
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
Answer to Question 1

A

Answer to Question 2

D




WWatsford

  • Member
  • Posts: 539
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review


skipfourms123

  • Member
  • Posts: 343
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

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?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

For a complete list of videos, visit our video library