Question
1. The reason for the downward-sloping IS curve is that ________. A) lower interest rates lead to lower saving and lower output B) lower interest
1. The reason for the downward-sloping IS curve is that ________. A) lower interest rates lead to lower saving and lower output
B) lower interest rates lead to lower saving and higher output
C) higher interest rates lead to lower saving and higher output
D) all of the above E) none of the above
2.A decrease in autonomous consumption ________.
A) raises planned expenditures
B) lowers equilibrium output for any level of the interest rate C) shifts the IS curve to the right
D) all of the above
E) none of the above
3.The AD Curve ________.
A) demonstrates how central banks respond to changes in interest rates by changing the inflation rate
B) shows how changes in equilibrium output affect the inflation rate
C) explains long run fluctuations in output and inflation
D) all of the above
E) none of the above
4. Factors that shift the AD Curve include ________. A) autonomous net exports
B) autonomous inflation
C) autonomous interest rates
D) all of the above E) none of the above
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