Compared to the closed economy Keynesian model, the open economy model in which imports are a function of income has an investment multiplier that is

If Abercrombie & Fitch borrows $8 million from a bank to finance the construction of a new store, this is an example of

A) indirect finance. B) a bond market transaction. C) direct finance. D) a stock market transaction.

An increase in the aggregate price level, P, will most likely have which of the following effects?

A) a rightward shift in the IS curve B) a leftward shift in the IS curve C) an upward shift in the LM curve D) a downward shift in the LM curve