The spending hypothesis suggests that the great

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The spending hypothesis suggests that the Great Depression was caused by a: Pool Canvas ... 19 of 40 6/1/2012 8:51 PM
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Answer leftward shift in the IS curve. rightward shift in the IS curve. leftward shift in the LM curve. rightward shift in the LM curve. Add Question Here Multiple Choice 0 points Question All of the following events are consistent with the spending hypothesis as contributing to the Great Depression except : Answer the decline in investment spending on housing because of a decline in immigration in the 1930s. the decline in consumption spending caused by the stock market crash of 1929. fiscal policy to reduce the budget deficit by raising taxes in 1932. the 25 percent reduction in the money supply between 1929 and 1933. Add Question Here Multiple Choice 0 points Question The money hypothesis suggests that the Great Depression was caused by a: Answer leftward shift in the IS curve. rightward shift in the IS curve. leftward shift in the LM curve. rightward shift in the LM curve. Add Question Here Multiple Choice 0 points Question The Great Depression in the United States: Answer was likely caused by a fall in the money supply because it fell by 25 percent from 1929 to 1933. cannot be attributed to a fall in the money supply because the money supply did not fall. probably cannot be considered to have started because of a leftward shift in the LM curve because real balances did not fall between 1929 and 1931. probably was caused by a leftward shift in the LM curve because interest rates remained high between 1929 and 1933. Add Question Here Multiple Choice 0 points Question The Pigou effect: Answer suggests that as prices fall and real money balances rise, consumers should feel less wealthy and spend less. suggests that as prices fall and real money balances rise, consumers should feel wealthier and spend more. suggests that as prices fall and real money balances rise, consumers should feel less wealthy but spend more. is generally accepted as adequate proof that the economy must be able to correct itself. Add Question Here Multiple Choice 0 points Pool Canvas ... 20 of 40 6/1/2012 8:51 PM
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Question The Pigou effect suggests that falling prices will increase income because real balances influence ______ and will shift the ______ curve. Answer money demand; LM the money supply; LM consumer spending; IS government spending; IS Add Question Here Multiple Choice 0 points Question If real money balances enter the IS-LM model both through the theory of liquidity preference and the Pigou effect, than a fall in the price level will shift: Answer only the LM curve. only the IS curve. both the LM and the IS curves. neither the LM nor the IS curves.
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