According to the Keynesian IS-LM model, what is the effect of the following shock on output, employment, real interest rate, consumption, and investment in the Short Run.A wave of credit-fraud increases the frequency with which people make transactions in cash.OutputO A. increasesB. stays unchangedO C. decreasesEmploymentA. increasesO B. decreasesO C. stays unchangedReal interest rateO A. stays unchangedO B. increasesO C. decreasesConsumptionO A. stays unchangedO B. decreasesO C. increasesInvestmentO A. decreasesO B. increasesO C. stays unchanged

The LM curve rises when the demand for cash rises. This arises because, at any given level of income…

According to the Keynesian IS-LM model, what is the effect of the following shock on output, employment, real interest rate, consumption, and investment in the Short Run. A wave of credit-fraud increases the frequency with which people make transactions in cash. Output O A. increases O B. stays unchanged OC. decreases Employment A. increases O B. decreases OC. stays unchanged Real interest rate O A. stays unchanged O B. increases O C. decreases Consumption O A. stays unchanged B. decreases O C. increases Investment O A. decreases O B. increases OC. stays unchanged

According to the Keynesian IS-LM model, what is the effect of the following shock on output, employment, real interest rate, consumption, and investment in the Short Run. A wave of credit-fraud increases the frequency with which people make transactions in cash. Output O A. increases O B. stays unchanged OC. decreases Employment A. increases O B. decreases OC. stays unchanged Real interest rate O A. stays unchanged O B. increases O C. decreases Consumption O A. stays unchanged B. decreases O C. increases Investment O A. decreases O B. increases OC. stays unchanged

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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