Author Question: Compared to the closed economy Keynesian model, the open economy model in which imports are a ... (Read 73 times)

armygirl · **on:** Jun 30, 2018

Compared to the closed economy Keynesian model, the open economy model in which imports are a function of income has an investment multiplier that is

a. smaller.
b. larger.
c. equal.
d. equal to 1.

Question 2

A decline in the money stock will

a. shift the LM schedule to the right.
b. shift the LM schedule to the left.
c. not have any effect on the LM schedule.
d. shift the IS schedule downward and to the right.