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Author Question: In the IS-LM model, if interest rates rise while output falls the a. money supply must have ... (Read 85 times)

AEWBW

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on: Jun 30, 2018
In the IS-LM model, if interest rates rise while output falls the
 
  a. money supply must have fallen.
  b. price level must have fallen.
  c. money supply must have risen.
  d. level of government spending must have fallen.
  e. none of the above.

Question 2

The policy of keeping tax rates stable as government spending fluctuates is known as ________.
 
  A) Ricardian equivalence
  B) tax smoothing
  C) crowding-out
  D) a tax smoothie


brittrenee

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

A

Answer to Question 2

B


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