Assume that the current demand for goods DOES depend on expectations in the IS-LM model. A monetary expansion in the current period will cause a rightward shift in the IS curve if
A) current and expected future real interest rates are positively related.
B) current and expected future real interest rates are negatively related.
C) current and expected future real interest rates are unrelated.
D) the central bank is expected to reverse any current movements in monetary policy in the future.
E) monetary policy cannot affect, directly or indirectly, the position of the IS curve in the current period.
A
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Which of the following tariffs resulted in worldwide retaliation against the United States during the Great Depression?
A) the Chicken tariff B) the Pasta Tariff C) the Smoot-Hawley tariff D) the Tariff of Abominations
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2. B. P1 and Y2. C. P4 and Y2. D. P1 and Y1.