In 2006, real GDP in Belgium grew at a 3 percent rate and inflation was 1.8 percent while the population did not change. As a result, there was ________ demand for money curve in Belgium
A) a rightward shift of the
B) a leftward shift of the
C) a movement up along the
D) no change in the
A
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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
Assume that an economy is in equilibrium with a budget deficit of $130 billion, positive net exports of $453 billion, and savings equal to $1,550 billion. If taxes are zero, then planned investment spending must be equal to:
a. $1,550 billion. b. $130 billion. c. $1,873 billion. d. $1,227 billion. e. $967 billion.