12) Which of the following would shift the FE line to the left?

A) A beneficial supply shocks

B) An increase in labor supply

C) A decrease in the capital stock

D) A decrease in the future marginal productivity of capital

13) Which of the following would shift the IS curve to down and the left?

A) A decrease in the effective tax rate on capital

B) A decrease in money supply

C) A decrease in marginal productivity of labor

D) A decrease in the future marginal productivity of capital

14) A temporary decrease in government purchases causes the real interest rate to ________and a decrease in money demand causes the real interest rate to ________.

A) rise; rise

B) rise; fall

C) fall; rise

D) fall; fall

15) Which of the following changes shifts the AD curve up and to the right?

A) An increase in corporate taxes

B) An increase in income taxes (assuming Ricardian equivalence doesn't hold)

C) A decrease in the risk on nonmonetary assets

D) A decrease in the liquidity on nonmonetary assets