Assume perfect capital mobility and a fixed exchange rate system. Then, an increase in government spending would shift the
a. LM schedule to the left.
b. BP schedule to the right.
c. BP schedule to the left.
d. IS schedule to the right.
D
Economics
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Which one of the following techniques is an example of the replacement cost method of economic valuation?
a. Contingent valuation b. Hedonic pricing c. Travel cost method d. Habitat equivalency analysis e. Cost-effectiveness valuation
Economics
Everything else held constant, a decrease in government spending will cause the IS curve to shift to the ________ and aggregate demand will ________
A) right; increase B) right; decrease C) left; increase D) left; decrease
Economics