In an IS-LM model, an increase in autonomous spending
A: is caused by a fall in the interest rate
B: will cause a fall in the interest rate
C: will lead to an increase in income and the interest rate
D: will shift the LM-curve to the right
E: is caused by a movement along the IS-curve from left to right
A: is caused by a fall in the interest rate
B: will cause a fall in the interest rate
C: will lead to an increase in income and the interest rate
D: will shift the LM-curve to the right
E: is caused by a movement along the IS-curve from left to right
举一反三
- Which of the following will occur in an IS-LM model, if the government decides to raise the income tax rate? A: the IS-curve will become flatter and shift to the right B: the IS-curve will become steeper and shift to the left C: the IS-curve will shift parallel to the left D: the LM-curve will become steeper and shift to the right E: the LM-curve will shift parallel to the right
- If the inflation rate is zero, then A: both the nominal interest rate and the real interest rate can fall below zero. B: the nominal interest rate can fall below zero, but the real interest rate cannot fall below zero. C: the real interest rate can fall below zero, but the nominal interest rate cannot fall below zero. D: neither the nominal interest rate nor the real interest rate can fall below zero.
- When the interest rate on a bond is below the equilibrium interest rate, there is excess _________ in the bond market and the interest rate will _________ A: demand; rise B: demand; fall C: supply; fall D: supply; rise
- When the interest rate on a bond is above the equilibrium interest rate, in the bond market there is excess ________ and the interest rate will ________. A: demand; rise B: demand; fall C: supply; fall D: supply; rise
- Which of the following is NOT a result of a temporary fall in foreign demand on one country's exports under floating exchange rate? ( ) A: The AA curve shifts downwards due to reduction of money supply. B: A fall in aggregate output C: A fall in the home interest rate D: The DD curve shifts to the left due to reduction of aggregate demand.