A decline in the money ________ shifts the LM curve to the ________, causing the interest rate to rise and output to fall, everything else held constant

In a proportional tax system, ________

A) the average tax rate faced by an individual exceeds the marginal tax rate B) the marginal tax rate faced by an individual exceeds the average tax rate C) the average tax rate equals the marginal tax rate D) the marginal tax rate faced by all households are equal

Contractionary monetary policy in a flexible exchange rate regime will cause

A) a shift of the IP curve. B) a depreciation of the domestic currency. C) an increase in E. D) no change in E.