All else being equal, an increase in government spending would shift the ______ line to the ______, causing interest rates to _______ and the trade balance to _______.
A) LM; right; fall; fall
B) IS; right; rise; rise
C) LM; left; rise; rise
D) IS; right; fall; fall
Ans: B) IS; right; rise; rise
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Suppose the majority of the shares of Yahoo stock were sold to an Italian firm. Other things equal, this will
A) increase the balance of the U.S. current account. B) increase the balance of the U.S. financial account. C) create a capital outflow in the United States. D) decrease net portfolio investment in the United States.
An increase in the marginal productivity of labor will tend to
a. shift the labor supply curve rightward if the change is temporary. b. result in an increase in employment if the change is temporary. c. result in an increase in employment if the change is permanent. d. all of the above.