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Author Question: Suppose households unexpectedly decrease consumption. Which of the following will occur as a result ... (Read 85 times)

Metfan725

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on: Jun 30, 2018
Suppose households unexpectedly decrease consumption. Which of the following will occur as a result of this unexpected reduction in consumption?
 
  A) an increase in stock prices
  B) a reduction in stock prices
  C) no change in stock prices
  D) an ambiguous effect on stock prices

Question 2

The LM curve shifts down (or, equivalently, to the right) when which of the following occurs?
 
  A) an increase in taxes
  B) an increase in output
  C) an open market sale of bonds by the central bank
  D) an increase in consumer confidence
  E) none of the above


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joshbk44

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

E


Metfan725

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

amit

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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