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

Author Question: Suppose policy makers implement an unexpected fiscal expansion. Further assume that monetary policy ... (Read 139 times)

WWatsford

  • Hero Member
  • *****
  • Posts: 539
    • Biology Forums!
on: Jun 30, 2018
Suppose policy makers implement an unexpected fiscal expansion. Further assume that monetary policy is expected to keep interest rates constant in response to this unexpected fiscal expansion. Given this information, we would expect that
 
  A) stock prices will rise.
  B) stock prices will remain constant.
  C) this policy will have an ambiguous effect on stock prices.
  D) the effect on stock prices will depend on the slope of the IS curve.

Question 2

The IS curve represents
 
  A) the single level of output where the goods market is in equilibrium.
  B) the single level of output where financial markets are in equilibrium.
  C) the combinations of output and the interest rate where the money market is in equilibrium.
  D) the combinations of output and the interest rate where the goods market is in equilibrium.
  E) none of the above


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cat123

  • Sr. Member
  • ****
  • Posts: 310
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

D


WWatsford

  • Member
  • Posts: 539
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

Bigfoot1984

  • Member
  • Posts: 321
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Humanmade pollutants may be driving the expansion of the Earth’s tropical belt seen Humanmade pollutants may be driving the expansion of the Earth’s tropical belt seen
Generally, the total tax burden in the United States is much lower than that of other industrialize Generally, the total tax burden in the United States is much lower than that of other industrialize
In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con
Downstream Process - Inoculum Preparation & Expansion Downstream Process - Inoculum Preparation & Expansion
Ecosystem goods and services and monetary values Ecosystem goods and services and monetary values
Palpation for respiratory expansion: Anterior view Palpation for respiratory expansion: Anterior view
Video: Causes of Acne

For a complete list of videos, visit our video library