A change in which of the following variables would affect the ...

[panfilo]

A change in which of the following variables would affect the cash flow for a firm?
 
  A) changes in the nominal interest rate
  B) expected future profit
  C) changes in the real interest rate
  D) changes in expected inflation
  E) none of the above

Question 2

A reasonable dynamic assumption for the IS-LM model is that
 
  A) the economy is always on both the IS and LM curves.
  B) the economy is always on the IS curve, but moves only slowly to the LM curve.
  C) the economy is always on the LM curve, but moves only slowly to the IS curve.
  D) the money market is quick to adjust, but the bond market adjusts more slowly.
  E) adjustment to the new IS-LM equilibrium is instantaneous after an LM shift, but not after an IS shift.

[nikmaaacs]

Answer to Question 1

E

Answer to Question 2

C

[panfilo]

Excellent

[ryansturges]

Thanks for the timely response, appreciate it