hw_10 - View Attempt...

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View Attempt https://compass.uiuc.edu/webct/urw/lc178263038031.tp178316624131/v. .. 1 of 28 3/27/2008 7:59 AM View Attempt 0 of 1 Title: HW10 (CH13) Started: March 27, 2008 7:58 AM Submitted: March 27, 2008 7:58 AM Time spent: 00:00:03 Comments: Total score: 0/33 = 0% Total score adjusted by 0.0 Maximum possible score: 33 Done 1. Why does a decrease in the quantity of money supplied shift the aggregate demand curve to the left? Student Response Value Correct Answer Feedback 1. A decrease in the money supply at any given price level will raise the interest rate, causing planned investment spending and planned aggregate expenditure to rise, thus lowering output at the given price level. 0% 2. A decrease in the money supply requires contractionary fiscal policy, which lowers the interest rate, causing planned investment spending and planned aggregate expenditure to rise, thus raising output at any given price level. 0%
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View Attempt https://compass.uiuc.edu/webct/urw/lc178263038031.tp178316624131/v. .. 2 of 28 3/27/2008 7:59 AM Student Response Value Correct Answer Feedback 3. A decrease in the money supply decreases consumption by the marginal propensity to consume, thus decreasing output at any given price. 0% 4. A decrease in the money supply at any given price level will lower the interest rate, causing planned investment spending and planned aggregate expenditure to rise, thus raising output at the given price level. 0% 5. A decrease in the money supply at any given price level will raise the interest rate, causing planned investment spending and planned aggregate expenditure to fall, thus lowering output at the given price level. 100% Score: 0/1 Comments: 2.
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View Attempt https://compass.uiuc.edu/webct/urw/lc178263038031.tp178316624131/v. .. 3 of 28 3/27/2008 7:59 AM Why does an increase in net taxes shift the aggregate demand curve to the left? Student Response Value Correct Answer Feedback 1. An increase in net taxes at any given price results in a fall in consumption, which decreases planned aggregate expenditure, which leads to an decrease in output at the given price level. 100% 2. An increase in net taxes at any given price results in a rise in consumption, which increases planned aggregate expenditure, which leads to an increase in output at the given price level. 0% 3. An increase in net taxes at any given price requires an expansionary monetary policy, which lowers the interest rate, which leads to an increase in investment spending and aggregate output. 0%
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View Attempt https://compass.uiuc.edu/webct/urw/lc178263038031.tp178316624131/v. .. 4 of 28 3/27/2008 7:59 AM Student Response Value Correct Answer Feedback 4. An increase in net taxes at any given price results in a rise in consumption, which decreases planned aggregate expenditure, which leads to an decrease in output at the given price level. 0%
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This note was uploaded on 04/09/2008 for the course ECON 103 taught by Professor Petry during the Spring '08 term at University of Illinois at Urbana–Champaign.

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hw_10 - View Attempt...

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