Author Question: High differentials in interest rates suggest that the financial markets of New England, the Middle ... (Read 9 times)

jlmhmf

  • Hero Member
  • *****
  • Posts: 552
High differentials in interest rates suggest that the financial markets of New England, the Middle Atlantic and the South were not integrated with those of New York City.
 
  Indicate whether the statement is true or false

Question 2

In the IS-LM model, an increase in government spending in the goods market has an impact on the money market because
 
  a. it increases the money supply.
  b. it increases income, which increases money demand.
  c. it decreases income, which decreases money demand.
  d. it increases interest rates, which decreases money demand.
  e. none of the above.



CourtneyCNorton

  • Sr. Member
  • ****
  • Posts: 317
Answer to Question 1

True

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Did you know?

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

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

For a complete list of videos, visit our video library