The IS-LM model predicts that a temporary beneficial supply shock
A. increases output, national saving, and the real interest rate, but not investment.
B. increases output, national saving, and investment, but not the real interest rate.
C. increases output, national saving, investment, and the real interest rate.
D. increases the real interest rate, investment, and output, but not national saving.
Answer: B
Economics
You might also like to view...
The largest component of aggregate income is:
A. rents. B. interest. C. employee compensation. D. profits.
Economics
Which of the following are most likely to have indifference curves that are L-shaped?
A. Coke and Pepsi B. Ice cream and frozen yogurt C. A white shirt and a blue shirt D. Your textbook and its study guide
Economics