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hw_9 - View Attempt...

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View Attempt https://compass.uiuc.edu/webct/urw/lc178263038031.tp178316624131/v... 1 of 21 3/27/2008 7:58 AM View Attempt 0 of 1 Title: HW 9 (CH12) Started: March 27, 2008 7:58 AM Submitted: March 27, 2008 7:58 AM Time spent: 00:00:05 Comments: Total score: 0/25 = 0% Total score adjusted by 0.0 Maximum possible score: 25 Done 1. One reason why the goods market and the money market are linked is because Student Response Value Correct Answer Feedback 1. planned investment, which is determined in the goods market, has significant effects on the interest rate in the goods market. 0% 2. money demand, which is determined in the goods market, has significant effects on planned investment in the money market. 0% 3. the interest rate, which is determined in the money market, has 100%
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View Attempt https://compass.uiuc.edu/webct/urw/lc178263038031.tp178316624131/v... 2 of 21 3/27/2008 7:58 AM Student Response Value Correct Answer Feedback significant effects on planned investment in the goods market. 4. money demand, which is determined in the goods market, has significant effects on the interest rate in the money market. 0% 5. the interest rate, which is determined in the goods market, has significant effects on the demand for money in the money market. 0% Score: 0/1 Comments: 2. When the interest rate increases, planned investment falls because Student Response Value Correct Answer Feedback 1. money demand is high, which encourages firms to increase their inventories. 0%
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View Attempt https://compass.uiuc.edu/webct/urw/lc178263038031.tp178316624131/v... 3 of 21 3/27/2008 7:58 AM Student Response Value Correct Answer Feedback 2. it becomes more costly to borrow, and fewer investment projects are likely to be undertaken. 100% 3. aggregate expenditure falls as firms substitute away from capital goods. 0% 4. it becomes less costly to borrow, and fewer investment projects are likely to be undertaken. 0% 5. money demand is low, which encourages firms to allow their capital to depreciate. 0% Score: 0/1 Comments: 3. When the interest rate falls, equilibrium output increases because Student Response Value Correct Answer Feedback 1. a lower interest rate discourages planned investment, which lowers planned aggregate expenditure, which increases 0%
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View Attempt https://compass.uiuc.edu/webct/urw/lc178263038031.tp178316624131/v... 4 of 21 3/27/2008 7:58 AM Student Response Value Correct Answer Feedback equilibrium output. 2. a lower interest rate discourages planned investment, which increases planned aggregate expenditure, which increases equilibrium output. 0% 3. a lower interest rate encourages planned investment, which lowers planned aggregate expenditure, which increases equilibrium output. 0% 4. a lower interest rate encourages planned investment, which increases planned aggregate expenditure, which increases equilibrium output. 100% Score: 0/1 Comments: 4. When aggregate output decreases, the interest rate falls because
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View Attempt https://compass.uiuc.edu/webct/urw/lc178263038031.tp178316624131/v...
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