Suppose that as sales of goods shift from bricks-and-mortar stores to the internet,the transactions demand for cash declines. Then in the absence of any other changes,
A) the IS curve shifts outward
B) the LM curve shifts inward
C) the velocity of money will adjust to keep GDP constant
D) interest rates will fall and GDP will increase
E) interest rates will rise and investment will decline
Correct Answer:
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Q13: Setting a target of zero for the
Q14: Which of the following is most likely
Q15: The LM curve slopes upward because
A) as
Q16: In the Keynesian model,
A) the IS curve
Q17: A low,positive rate of price inflation
A) allows
Q19: Which of the following characterizes intermediate targeting
Q20: Italy and the United Kingdom abandoned their
Q21: Which of the following is true of
Q22: The next questions refer to the following.
Suppose
Q23: The credit channel refers to
A) changes in
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