Based on our understanding of the IS-LM model that takes into account dynamics, we know that a reduction in the money supply will cause
A) an immediate drop in Y and immediate increase in i.
B) an immediate increase in i and no initial change in Y.
C) a gradual increase in i and gradual reduction in Y.
D) none of the above
B
Economics
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High-skilled workers earn more than low-skilled workers in part because
A) high-skilled workers have higher value of marginal products. B) of government legislation. C) the supply of high-skilled workers is more elastic. D) the demand for high-skilled workers is more elastic.
Economics
What is a normal profit? Is it part of the firm's opportunity costs, total revenue, or neither?
What will be an ideal response?
Economics