When drawn against the real interest rate, output supply ...

[cartlidgeashley]

When drawn against the real interest rate, output supply increases if
 
  A) current government expenses increase.
  B) future government expenses increase.
  C) current total factor productivity increases.
  D) the money supply increases.

Question 2

If the financial innovations such as ATM machines make money demand less elastic than it was before, then
 
  a. the LM curve will become steeper.
  b. the LM curve will become flatter.
  c. both the IS and LM curves will become flatter.
  d. the LM curve will shift to the left.

[Qarqy]

Answer to Question 1

C

Answer to Question 2

A

[cartlidgeashley]

Excellent

[T4T]

TYSM