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

Author Question: Assume that the one-year interest rate is on the vertical axis of the IS-LM model and that the yield ... (Read 73 times)

frankwu

  • Hero Member
  • *****
  • Posts: 549
on: Jun 30, 2018
Assume that the one-year interest rate is on the vertical axis of the IS-LM model and that the yield curve is initially upward sloping. Suppose that financial market participants expect that the central bank will pursue a monetary contraction in the future. Given this information, we would expect which of the following to occur?
 
  A) The yield curve will become steeper.
  B) The yield curve will become flatter.
  C) The yield curve will become horizontal.
  D) The yield curve will become downward sloping.

Question 2

If individuals do not hold currency, we know that
 
  A) M = D.
  B) H = R.
  C) the money multiplier is 1/.
  D) all 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

shaikhs

  • Sr. Member
  • ****
  • Posts: 312
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

D


frankwu

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

matt95

  • Member
  • Posts: 317
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Defibrillator. Defibrillators are devices that supply a voltage charge to the heart in the hope of r Defibrillator. Defibrillators are devices that supply a voltage charge to the heart in the hope of r
Eighteen-year-olds were the largest age cohort in the first year of the war in both armies. Soldiers Eighteen-year-olds were the largest age cohort in the first year of the war in both armies. Soldiers
Elementary particles included in the Standard Model Elementary particles included in the Standard Model
Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ... Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ...
Nancy borrowed $8000 from her grandfather to buy a car when she started college. The interest ... Nancy borrowed $8000 from her grandfather to buy a car when she started college. The interest ...
Molecular model of homologous recombination in meiosis Molecular model of homologous recombination in meiosis
Video: Structures that affect circulation - kidneys and blood volume and skeletal muscle pumping

For a complete list of videos, visit our video library