With unstable commodity demand and thus an unstable ________ curve, fluctuations in output are ________ by the fortuitous selection of ________ targeting

A) LM, minimized, money supply
B) LM, eliminated, interest rate
C) LM, minimized, interest rate
D) IS, minimized, money supply
E) IS, eliminated, interest rate

D

Economics

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If the United States experiences an economic boom, compared to other countries, how will this affect the value of the U.S. dollar?

A. It will fall because other nations would be forced to raise their interest rates. B. It will fall because the United States will import more goods and services, leading to an increased supply of dollars. C. It will rise because U.S. GDP would be rising faster than other countries. D. It will rise because the Fed will have to lower U.S. interest rates.

Economics

Suppose the government is considering whether to build a community health clinic. If the government wants to increase total economic surplus, then it should build the health clinic if the marginal benefit of the health clinic is:

A. greater than zero. B. decreasing. C. less than its marginal cost. D. greater than its marginal cost.

Economics