An increase in government spending will likely have which of the following effects?
A) a rightward shift in the IS curve
B) a leftward shift in the IS curve
C) an upward shift in the LM curve
D) a downward shift in the LM curve
A
Economics
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As the expected future spot rate moves closer to the spot rate, uncovered interest parity indicates that:
a. interest rates should remain constant. b. interest rates should converge. c. interest rates should diverge. d. The answer depends on whether the expected future spot rate is higher or lower than the spot rate.
Economics
By lowering the legal reserve requirement, the Federal Reserve System forces banks to hold repaid loans as required reserves instead of lending the funds again
Indicate whether the statement is true or false
Economics