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The goods market and the money market are linked together by Select one: a. interest rate. O b. monetary policy. O c. the labor market. 0 d. fiscal policy. Question 12 Not yet answered Marked out of 1.00 p Flag question The LM-curve becomes flatter if Select one: O a. money demand becomes less sensitive to changes in the interest rate. b. money demand becomes more sensitive to changes in the interest rate. 0 O c. the monetary policy multiplier becomes large. O d. money demand becomes more sensitive to changes in income. Question 13 Not yet answered Marked out of 1.00 p Flag question We can expect the IS-curve to get flatter as Select one: O a. money demand becomes less sensitive to changes in the interest rate. b. the income tax rate increases. c. the marginal propensity to save decreases. d. the expenditure multiplier decreases. The equation i = (k/h)Y - (1/h)(Mo/Po) best describes Select one: a. None of the above O b. the LM-curve. O c. the AD-curve. d. the IS-curve. Question 10 Not yet answered Marked out of 1.00 p Flag question The equation: i = (1/b)AO - (b/a)Y best describes Select one: a. the LM-curve. b. the IS-curve c. the AD-curve. d. None of the above Question 14 Not yet answered Marked out of 1.00 p Flag question Which of the following equations can be used to derive all combinations of the income level and the interest rate that establish an equilibrium in the expenditure sector? Select one: a. Mo/Po = KY -hi b. Y = (CO + CY) + (lo-bi) + Go + NXO C. I = lo-bi d. None of the above Question 15 Not yet answered Marked out of 1.00 p Flag question Which of these policy measures will make the IS curve steeper and shift it to the left? Select one: a. an increase in lump sum taxes b. a decrease in government transfer payments c. a decrease in money supply d. an increase in the income tax rate