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Author Question: Consider the two graphs above. Suppose there is an increase in the real interest rate. This would ... (Read 69 times)

tiffannnnyyyyyy

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on: Jun 30, 2018
Consider the two graphs above. Suppose there is an increase in the real interest rate. This would ________ the desired level of the capital stock, as depicted in graph ________.
 
  A) increase; B
  B) increase; A
  C) decrease; B
  D) decrease; A

Question 2

The standard IS curve is adjusted in new Keynesian theory to account for ________.
 
  A) the forward-looking behavior of households and firms
  B) the difference between real and nominal variables
  C) changes in GDP, or Gross Domestic Product
  D) the impact of a rising national debt


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jessofishing

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

C

Answer to Question 2

A


tiffannnnyyyyyy

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

alvinum

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Reply 3 on: Yesterday
:D TYSM

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