11. Statement 1: The multiplier for autonomous consumption, I and G are different given a specific value of MPC.
Statement 2: The lumpsum tax multiplier is always the G multiplier times the MPC.
a)Statement 1 is true, Statement 2 is true.
b)Statement 1 is true, Statement 2 is false.
c)Statement 1 is false, Statement 2 is true.
d)Statement 1 is false, Statement 2 is false.
12. Pick the correct statement
a)Every point on the IS curve corresponds to an equilibrium value of Y, for a given value of r.
b)Every point on the IS curve corresponds to an equilibrium in the commodity market.
c)Both (a) and (b)
d)None of the above
13. Increase in real money supply
a)Shifts the IS curve to the right
b)Shifts the LM curve to the right
c)Both (a) and (b)
d)None of the above
14. Together the IS-LM model shows an equilibrium. This equilibrium denotes
a)An equilibrium in the commodity market
b)An equilibrium in the money market
c)An equilibrium in the market for loanable funds
d)All of the above
15. Suppose that an expansionary fiscal policy has been enacted. To keep interest rates unchanged, what must the central bank do?
a)Nothing
b)Lower real money supply
c)Raise real money supply
d)None of the above
11. Statement 1: The multiplier for autonomous consumption, I and G are different given a specific value of MPC.
Statement 2: The lumpsum tax multiplier is always the G multiplier times the MPC.
a)Statement 1 is true, Statement 2 is true.
b)Statement 1 is true, Statement 2 is false.
c)Statement 1 is false, Statement 2 is true.
d)Statement 1 is false, Statement 2 is false.
12. Pick the correct statement
a)Every point on the IS curve corresponds to an equilibrium value of Y, for a given value of r.
b)Every point on the IS curve corresponds to an equilibrium in the commodity market.
c)Both (a) and (b)
d)None of the above
13. Increase in real money supply
a)Shifts the IS curve to the right
b)Shifts the LM curve to the right
c)Both (a) and (b)
d)None of the above
14. Together the IS-LM model shows an equilibrium. This equilibrium denotes
a)An equilibrium in the commodity market
b)An equilibrium in the money market
c)An equilibrium in the market for loanable funds
d)All of the above
15. Suppose that an expansionary fiscal policy has been enacted. To keep interest rates unchanged, what must the central bank do?
a)Nothing
b)Lower real money supply
c)Raise real money supply
d)None of the above
Related textbook solutions
Related questions
If a price floor is imposed on a market above equilibrium, welfare will increase when the price control is lifted.
If a price ceiling is below equilibrium and then is repealed and allowed to rise to equilibrium, welfare in the system will increase.
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A. The first statement is true and the second is false |
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B. The first statement is false and the second statement is true |
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C. Both statements are false |
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D. Both statements are true |
