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Author Question: A shift of the MP curve ________. A) implies an automatic adjustment of the interest rate B) ... (Read 32 times)

Shelles

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A shift of the MP curve ________.
 
  A) implies an automatic adjustment of the interest rate
  B) implies a direct policy action of the Federal Reserve
  C) does not alter the relationship between inflation and the interest rate
  D) all of the above
  E) none of the above

Question 2

Crowding out refers to the decrease in ________ that may result from an increase in government spending.
 
  A) private investment
  B) imports
  C) private saving
  D) all of the above
  E) none of the above



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b614102004

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Answer to Question 1

B

Answer to Question 2

A





 

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