In the islm framework an expansionary monetary policy

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72) In the ISLM framework, an expansionary monetary policy causes aggregate output to _____ and the interest rate to _____. (a) increase; increase (b) increase; decrease (c) decrease; decrease (d) decrease; increase Answer: B Question Status: Previous Edition 73) An expansionary monetary policy 74) An expansionary monetary policy 75) A monetary expansion is characterized by 76) A contractionary monetary policy (a) shifts the LM curve to the left, reducing output and increasing interest rates. (b) shifts the LM curve to the left, reducing both real output and interest rates. (c) shifts the LM curve to the right, reducing both interest rates and real output. (d) shifts the LM curve to the right; reducing interest rates and increasing real output. (e) does not shift the LM curve. Answer: A Question Status: New
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876 Frederic S. Mishkin • Economics of Money, Banking, and Financial Markets, Seventh Edition 77) A contractionary monetary policy 78) In the money market, a condition of excess demand for money can be eliminated by a _____ in aggregate output or a _____ in the interest rate, both of which reduce the quantity of money demanded. 79) In the money market, a condition of excess supply of money can be eliminated by a _____ in aggregate output or a _____ in the interest rate, both of which increase the quantity of money demanded.
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