Question
Mark the following statements as T or F and provide a one-sentence explanation. If the statement is false, you can provide a correction. Investment is
Mark the following statements as T or F and provide a one-sentence explanation. If the statement is false, you can provide a correction.
Investment is a function of final sales and the interest rate.
The IS curve shifts down because taxes reduce income.
The LM curve is horizontal at the interest rate the central bank chooses.
The LM curve is a set of all pair of interest rates and incomes at which the financial markets are in equilibrium.
As the price level rise, the real money supply falls.
An increase in government purchases lowers the IS curve.
If fiscal policy is expansionary, monetary policy must be as well.
The 2001 recession was caused by the 9/11 attack.
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