Question
I have these questions and i would appreciate it if you could help me with the right answers and the explanations A)The steeper is the
I have these questions and i would appreciate it if you could help me with the right answers and the explanations
A)The steeper is the IS curve,
1.the more effective is monetary policy.
2.a given change in the money supply will have a greater effect on output.
3.the less effective is monetary policy.
4.the effectiveness of monetary policy does not change.
Note: I know for sure it's not #3
B)As the IS curve becomes flatter, we know that
1.monetary policy becomes less effective.
2.a given change in the money supply will cause the same change in output.
3.a given change in the money supply will cause a larger change in output.
4.a given change in the money supply will cause a smaller change in output.
Note: I know for sure it's not #3
C)The flatter is the IS curve
1.the less effective is monetary policy.
2.a given change in the money supply will have a smaller effect on output.
3.the effectiveness of monetary policy does not change.
4.the more effective is monetary policy.
Note: I know for sure it's not #4
D)According to Keynes,
1.balancing the budget in the midst of a depression would be a serious mistake.
2.inflation is always and everywhere a monetary phenomenon.
3.the Great Depression was caused by ill-considered expansionary fiscal policy.
4.none of the above
5.the Phillips curve is stable.
Note: I know for sure it's not #4
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