Consider an economy with flexible exchange rates. If there are high levels of inflation in the economy, then the appropriate monetary policy would be to ________ the money supply, which will cause the ______ curve to shift ________.
A) increase; the LM; left
B) decrease; the LM; right
C) decrease; the LM; left
D) increase; the IS; left
Answer: C) decrease; the LM; left
Economics
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U.S. Imports and Exports by Area
Go to the table of contents for data found in the Economic Report of the President. Click on the table for U.S. international trade in goods by area.
Questions:
- Report the data in a table with 3 columns: "Area", "Exports", and "Imports" Then for each row of your table you will list an area (such as Euro area or Canada), the most recent levels of U.S. exports to and U.S. imports from that area.
- Which regions provide a trade surplus for the United States?
- What is the value of U.S. net exports to Japan?
Economics
If policymakers decrease aggregate demand, then in the short run the price level
a. falls and unemployment rises. b. and unemployment fall. c. and unemployment rise. d. rises and unemployment falls.
Economics