When interest rates fall, the IS schedule will experience
A) rightward movement along the curve.
B) leftward movement along the curve.
C) a shift to the left.
D) a shift to the right.
A
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The credibility theory of EMS had as an effect
A) the inflation rates of member countries converging to the low German levels, a result that was not matched by similar countries who did not fix their exchange rates. B) the inflation rates of member countries failing to converge to the low German levels. C) the inflation rates of member countries converging to the low German levels, but other countries including U.S. and Britain also reduced inflation in this time period without fixing exchange rates. D) the inflation rate in Germany rose to match the inflation rates of other member countries. E) the inflation rate in the U.S. dropped to the low German levels.
In the bond market, the seller is considered to be
A) the lender. B) the borrower. C) the lender or the borrower depending upon the use to which the funds are put. D) the lender or the borrower depending upon whether interest rates are rising or falling.