Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please can you help me with these questions. It is very important that they are answered correctly and please ingore the answers already given please.

Please can you help me with these questions. It is very important that they are answered correctly and please ingore the answers already given please.

image text in transcribedimage text in transcribedimage text in transcribed
QUESTION 16 With the interest rate on the vertical axis, if the sensitivity of the economy to interest rates is close to zero then the IS curve will be drawn and monetary policy is said to be O a. vertical; effective. O b. horizontal; ineffective. OC. vertical; ineffective. O d. downward sloping; effective. O e. horizontal; effective.QUESTION 15 In the context of a small open economy with national savings independent of the interest rate, an increase in taxation will: O a. reduce the level of national savings. O b. reduce the level of net exports. O C. increase the level of investment. d. increase net capital outflow. O e. increase the real interest rate.QUESTION 9 Using your calculated values for the short run and long run equilibrium. and in the context of the IS/LM diagram, explain the movements of the IS curve and LM curve in the adjustment towards long run equilibrium by completing the following statement: (Please choose between the following exact responses: The IS curve; The LM curve, Neither curve). In the adjustment towards the long run equilibrium. Neither curve shifts left; The IS curve shifts right and The LM curve remains static. QUESTION 10 Using your calculated values for the short run and long run equilibrium, and In the context of the ASIAD diagram, explain the movements of the AD curve, the SRAS curve and the LRAS curve in the adjustment towards long run equilibrium by completing the following statement: (Please choose between the following exact responses: The AD curve: The SRAS curve; The LRAS curve: No curve). in the adjustment towards the long run equilibrium. No curve shifts left: The SRAS curve shifts right/down and The LRAS curve remains static

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

Students also viewed these Economics questions