Shifts in the IS curve ________ the AD curve, and changes to the reaction function ________ the AD curve
A) cause a movement along; shift
B) shift; cause a movement along
C) temporarily shift; permanently shift
D) permanently shift; temporarily shift
C
Economics
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The minimum wage is an example of
A) a subsidy for low-skilled workers. B) a price floor. C) a black market. D) a price ceiling.
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An increase in the demand for Treasury bills will
A) eventually cause households to hold less money. B) decrease the price of Treasury bills. C) increase the opportunity cost of holding money vs. Treasury bills. D) decrease the interest rate on Treasury bills.
Economics