Author Question: Which of the following explains why the AD curve is downward sloping? a. a lower price level ... (Read 43 times)

acc299 · **on:** Jun 30, 2018

Which of the following explains why the AD curve is downward sloping?

a. a lower price level forces the government to reduce taxes, shifting the IS curve to the right and increasing income.
b. A lower price level forces the central bank to increase the money supply, shifting the LM curve to the right and increasing income.
c. A lower price level increases real money balances, shifting the LM curve to the right and increasing income.
d. none of the above are correct.

Question 2

The Navigation Acts (1651 and later amendments) were intended to promote shipping and international commerce.

Indicate whether the statement is true or false