An increase in the money supply must cause which of the following?
A) An upward shift in the LM curve.
B) A decrease in the interest rate and ambiguous effects on investment.
C) An increase in investment and a rightward shift in the IS curve.
D) No change in output if investment is independent of the interest rate.
E) No change in the interest rate if investment is independent of the interest rate.
Correct Answer:
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Q2: Which of the following will cause a
Q3: We know with certainty that a decrease
Q4: Suppose there is a simultaneous tax increase
Q5: An increase in the reserve deposit ratio,
Q6: Assume that investment spending depends only on
Q7: Suppose there is a decrease in consumer
Q8: An increase in the budget deficit decreasing
Q9: Suppose the economy is currently operating on
Q10: Suppose there is a simultaneous RBA sale
Q11: A decrease in the aggregate price level,
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