The price level is fixed whereas in the is lm model

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the price level is fixed whereas in the ISLMmodel it is allowed to vary.Add Question HereMultiple Choice1 pointsQuestionIn the ISLMmodel, changes in taxes initially affect planned expenditures through:Answerconsumption.investment.government spending.the interest rate.Add Question HereMultiple Choice1 pointsQuestionIn the ISLManalysis, the increase in income resulting from a tax cut is usually ______ the increase in incomeresulting from an equal rise in government spending.Answerless thangreater thanequal tosometimes less and sometimes greater thanPool Canvasfolder (12)/CourseComp...4 of 3112/8/2012 11:40 uni0645
Add Question HereMultiple Choice1 pointsQuestionExhibit: IS–LMMonetary PolicyReference: Ref 12-2(Exhibit: ISLMMonetary Policy) Based on the graph, starting from equilibrium at interest rate r1and income Y1, adecrease in the money supply would generate the new equilibrium combination of interest rate and income:Answerr2, Y2r3, Y2r2, Y3r3, Y3Add Question HereMultiple Choice1 pointsQuestionExhibit: IS–LMMonetary PolicyReference: Ref 12-2(Exhibit: ISLMMonetary Policy) Based on the graph, starting from equilibrium at interest rate r1and income Y1, anincrease in the money supply would generate the new equilibrium combination of interest rate and income:Answerr2, Y2r3, Y2r2, Y3r3, Y3Add Question HereMultiple Choice1 pointsQuestionIf the money supply increases, then in the ISLManalysis the ______ curve shifts to the ______.Pool Canvasfolder (12)/CourseComp...5 of 3112/8/2012 11:40 uni0645
AnswerLM; leftLM; rightIS; leftIS; rightAdd Question HereMultiple Choice1 pointsQuestionIn the IS–LMmodel when M/Prises, in short-run equilibrium, in the usual case the interest rate ______ and output______.Answerrises; fallsrises; risesfalls; risesfalls; fallsAdd Question HereMultiple Choice1 pointsQuestionIn the ISLMmodel when Mrises but Premains constant, in short-run equilibrium, in the usual case the interest rate______ and output ______.Answerrises; fallsrises; risesfalls; risesfalls; fallsAdd Question HereMultiple Choice1 pointsQuestionIn the ISLMmodel when Mremains constant but Prises, in short-run equilibrium, in the usual case the interest rate______ and output ______.Answerrises; fallsrises; risesfalls; risesfalls; fallsAdd Question HereMultiple Choice1 pointsQuestionIf the demand for real money balances does not depend on the interest rate, then the LMcurve:Answerslopes up to the right.slopes down to the right.is horizontal.is vertical.Add Question HereMultiple Choice1 pointsQuestionIn the ISLMmodel when the Federal Reserve decreases the money supply, people ______ bonds and the interestrate ______, leading to a(n) ______ in investment and income.

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