Author Question: An increase in autonomous investment ________. A) increases equilibrium output at any interest ... (Read 70 times)

Shelles · **on:** Jun 30, 2018

An increase in autonomous investment ________.

A) increases equilibrium output at any interest rate
B) causes a movement down along the IS curve
C) shifts the IS curve to the left
D) all of the above
E) none of the above

Question 2

The New Keynesian transmission mechanism for monetary policy is characterized by

A) helicopter drops of money.
B) money having an impact on the real interest rate.
C) banks using money injections for business loans.
D) the government buying goods with fresh money.