Question
In the IS-LM model when the nominal money supply M increases, in short-run equilibrium, in the usual case the interest rate ______ and output ______.
In the IS-LM model when the nominal money supply M increases, in short-run equilibrium, in the usual case the interest rate ______ and output ______.
a.
falls; falls
b.
rises; falls
c.
rises; rises
d.
falls; rises
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Essentials of Economics
Authors: N. Gregory Mankiw
8th edition
1337091995, 978-1337515351, 1337515353, 978-1337091992
