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

Author Question: An unexpected reduction in the money supply will tend to cause A) an increase in stock prices. ... (Read 108 times)

vinney12

  • Hero Member
  • *****
  • Posts: 586
on: Jun 30, 2018
An unexpected reduction in the money supply will tend to cause
 
  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

What is the IS relation? Explain why IS curve is downward sloping.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ttt030911

  • Sr. Member
  • ****
  • Posts: 315
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

The IS relation shows the combinations of the interest rate and the level of output that are consistent with equilibrium in the goods market. An increase in the interest rate leads to a decline in output. Consequently, the IS curve is downward sloping.


vinney12

  • Member
  • Posts: 586
Reply 2 on: Jun 30, 2018
Excellent

bimper21

  • Member
  • Posts: 309
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

The Hepatic Portal Blood Supply The liver receives water, minerals, and nutrients from the digestive The Hepatic Portal Blood Supply The liver receives water, minerals, and nutrients from the digestive
Balance the given redox reduction equation in basic solution using the half reaction method Balance the given redox reduction equation in basic solution using the half reaction method
Stock Market Tracks Growth in GDP Stock Market Tracks Growth in GDP
Determine m​, ​n, and i for money invested at 3.6​% compounded semi-annually for 3.5 ... Determine m​, ​n, and i for money invested at 3.6​% compounded semi-annually for 3.5 ...
Grade 1 learn Canadian money Grade 1 learn Canadian money
Video: Factors that affect conduction rates (myelination, axon diameter & temperature)

For a complete list of videos, visit our video library