Equilibrium in goods market (IS) and money market (LM) gives the a. long-run equilibrium b. short-run equilirium c. both d. none 2- Which of the following shift the aggregate demand curve to the right? decrease in the central banks inflation target increase in investment in business plant and equipment increase incost of production increase in imports
1-
Equilibrium in goods market (IS) and
a. long-run equilibrium
b. short-run equilirium
c. both
d. none
2-
Which of the following shift the aggregate
decrease in the central banks inflation target
increase in investment in business plant and equipment
increase incost of production
increase in imports
3-
The slope of the LM curve is determined by
a. the sensitivity of investment spending to the real interest rate
b. the gap between the return on money and the market interest rate
c. the effectiveness of
d. the sensitivity of the demand for real money balances to the nominal interest rate
4-
. Economic growth and money growth rates are 4% and 9%, respectively. Then, the rate of inflation is
a. 9 %
b. -5 %
c. 13 %
d. 5 %
5-
. Monetary neutrality shows
a. the negative relationship between money supply and
b. the positive relationship between money supply and price level
c. that money growth affect the real variables
d. none
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