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Author Question: A liquidity trap occurs when the a. LM curve is steep. b. LM curve is vertical. c. LM curve is ... (Read 83 times)

Davideckstein7

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on: Jun 30, 2018
A liquidity trap occurs when the
 
  a. LM curve is steep.
  b. LM curve is vertical.
  c. LM curve is relatively flat.
  d. IS curve is flat.

Question 2

When automatic fiscal stabilizers are in place, a shock that causes a fall in the level of economic activity automatically
 
  a. results in a decline in the federal budget deficit that lessens the fall in income.
  b. results in a rise in the federal deficit that lessens the fall in income.
  c. requires the federal government to balance the budget.
  d. will lead to a permanent increase in the budget deficit.
  e. both a and b


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chinwesucks

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

C

Answer to Question 2

B


Davideckstein7

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

juliaf

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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