In an IS-LM model, an increase in the money supply will
A) lower interest rates and therefore decrease the level of saving and investment
B) lower interest rates, stimulate investment spending, and increase national income
C) lower interest rates and bond prices and decrease money demand
D) stimulate investment spending, shifting both the LM- and IS-curves to the right
E) increase government spending since more funds become available
Correct Answer:
Verified
Q16: The level of investment spending is affected
Q17: Interest rate changes have an important side
Q18: In an IS-LM model, any point that
Q19: We can expect the IS-curve to become
Q20: In the IS-LM model, the interest rate
Q22: Which of the following will result in
Q23: Monetary policy becomes more effective as
A)the interest
Q24: In the money sector, other things being
Q25: In an IS-LM model, an increase in
Q26: The LM-curve becomes steeper if
A)money demand becomes
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