In the Activists' Paradise, to increase real GDP without affecting the interest rate, it is necessary to change
A) only fiscal policy and shift the IS curve.
B) only monetary policy and shift the LM curve.
C) fiscal and monetary policies and shift both IS and LM.
D) more policy instruments than policymakers are actually able to manipulate.
C
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Assuming that turkey, chicken, pork, and beef are substitutes, suppose that the price of turkey has fallen. This will, other things being equal
A) reduce demand for chicken, pork, and beef. B) leave demand for chicken, pork, and beef unchanged. C) increase demand for chicken, pork, and beef. D) increase quantity demanded of beef.
Refer to the table. The exchange rate in this market is:
Answer the question on the basis of the following table, which indicates the dollar price of luta, the currency used in the hypothetical economy of Luteland:
A. 8 luta for one dollar.
B. 0.60 luta for one dollar.
C. 6 luta for one dollar.
D. 0.125 luta for one dollar.