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review

Mahmoud Hemood 8 questions

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Questions in this quiz (8)

  1. 16. In the Keynesian-cross model, a decrease in the interest rate ______ planned investment spending and ______ the equilibrium level of income.
    1. AA) increases; increases
    2. BB) increases; decreases
    3. CC) decreases; decreases
    4. DD) decreases; increases
  2. 213. A decrease in the real money supply, other things being equal, will shift the LM curve:
    1. AA) downward and to the left.
    2. BB) upward and to the left.
    3. CC) downward and to the right.
    4. DD) upward and to the right.
  3. 311. According to the theory of liquidity preference, tightening the money supply will ______ nominal interest rates in the short run, and, according to the Fisher effect, tightening the money supply will ______ nominal interest rates in the long run.
    1. AA) increase; increase
    2. BB) increase; decrease
    3. CC) decrease; decrease
    4. DD) decrease; increase
  4. 412. An increase in consumer saving for any given level of income will shift the:
    1. AA) LM curve upward and to the left.
    2. BB) LM curve downward and to the right.
    3. CC) IS curve downward and to the left.
    4. DD) IS curve upward and to the right.
  5. 514. The U.S. recession of 2001 can be explained in part by a declining stock market and terrorist attacks. Both of these shocks can be represented in the IS–LM model by shifting the ______ curve to the ______.
    1. AA) LM; right
    2. BB) LM; left
    3. CC) IS; right
    4. DD) IS; left
  6. 615. When bond traders for the Federal Reserve seek to increase interest rates, they ______ bonds, which shifts the ______ curve to the left.
    1. AA) buy; IS
    2. BB) buy; LM
    3. CC) sell; IS
    4. DD) sell; LM
  7. 716. An increase in the money supply shifts the ______ curve to the right, and the aggregate demand curve ______.
    1. AA) IS; shifts to the right
    2. BB) IS; does not shift
    3. CC) LM: shifts to the right
    4. DD) LM; does not shift
  8. 817. A tax cut shifts the ______ to the right, and the aggregate demand curve ______.
    1. AA) IS; shifts to the right
    2. BB) IS; does not shift
    3. CC) LM: shifts to the right
    4. DD) LM; does not shift

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Econ Exam 3 Quiz on review, created by Mahmoud Hemood on 04/06/2019.
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English
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