A relatively steep LM curve implies that wide fluctuations in the goods sector cause
A) wide fluctuations in real output.
B) wide fluctuations in the price level.
C) wide fluctuations in the interest rate.
D) crowding out of private investment.
C
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In the short run, when the Fed raises the federal funds rate,
A) the real interest rate is unchanged so investment and consumption expenditure are not changed. B) the real interest rate temporarily falls, thereby increasing investment and consumption expenditure. C) the real interest rate temporarily increases, thereby decreasing investment and increasing consumption expenditure. D) the real interest rate temporarily increases, thereby decreasing investment and consumption expenditure. E) investment and consumption expenditure increase, thereby raising the real interest rate temporarily.
Explain whether a monopoly that maximizes profit will also be maximizing revenue and production
What will be an ideal response?