Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

So the question is during 2017, the U.S. aggregate real income, Y, increased sharply. We want to figure out what factors may have contributed to

So the question is during 2017, the U.S. aggregate real income, Y, increased sharply. We want to figure out what factors may have contributed to that income increase. Suppose that we know that the LM curve did not shift during that year and that the markets for money and for goods and services were both in equilibrium at all times. Which one of the following factors could have caused the increase in income in this situation? a. A temporary decrease in the domestic nominal interest rate. b. A decrease in the expected return on investment. c. A temporary increase in the domestic price level. d. A reduction in tax rates. e. All of the above.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Dynamic Business Law

Authors: Nancy Kubasek

1st Edition

0073524913, 9780073524917

More Books

Students also viewed these Economics questions

Question

4. What means will you use to achieve these values?

Answered: 1 week ago