This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Assume that the current demand for goods DOES depend on expectations in the IS-LM model. A monetary ... (Read 78 times)

jon_i

  • Hero Member
  • *****
  • Posts: 549
on: Jun 30, 2018
Assume that the current demand for goods DOES depend on expectations in the IS-LM model. A monetary expansion in the current period will cause a rightward shift in the IS curve if
 
  A) current and expected future real interest rates are positively related.
  B) current and expected future real interest rates are negatively related.
  C) current and expected future real interest rates are unrelated.
  D) the central bank is expected to reverse any current movements in monetary policy in the future.
  E) monetary policy cannot affect, directly or indirectly, the position of the IS curve in the current period.

Question 2

The policy rate is
 
  A) determined by monetary policy.
  B) a real interest rate.
  C) a risk premium.
  D) entering the IS equation.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nyrave

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

A


jon_i

  • Member
  • Posts: 549
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

carojassy25

  • Member
  • Posts: 299
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Model Organism Drosophila Model Organism Drosophila
Heliospheric-current-sheet Heliospheric-current-sheet
Health Belief Model Health Belief Model
(a) The relative age ranges of different dating techniques depend upon the half-life of the system u (a) The relative age ranges of different dating techniques depend upon the half-life of the system u
I know this is complicated, but take a crack at it anyway. This is a model of disequalibrium and its ... I know this is complicated, but take a crack at it anyway. This is a model of disequalibrium and its ...
A summary model of the regulation of gonadal hormones. A summary model of the regulation of gonadal hormones.
Video: Chemical Equilibrium between N2O4 (colorless gas) and NO2 (brown gas)

For a complete list of videos, visit our video library