NEED A PERFECT PAPER? PLACE YOUR FIRST ORDER AND SAVE 15% USING COUPON:

SOLVED

25.1Â Â Monetary Policy, Fiscal Policy, and Crowding Out 1) Monetarists argue that aggregate demand is A) vertical. B) horizontal. C) relatively unaffected by autonomous spending shifts. D) relatively unaffected by changes in the money supply. 2) Monetarists argue that the demand for money is unresponsive to interest rates, i.e. depends on income only, produces a A) vertical LM function. B) horizontal LM function. C) vertical IS function. D) horizontal IS function. 3) If the LM function is vertical, then __________ is constant. A) the price level B) the interest rate C) velocity D) investment 4) Monetarists argue that stability in the economy is maintained by fluctuations in A) velocity. B) money demand. C) money supply. D) the price level. 5) When the LM curve is vertically sloped, the __________ in income due to a change in the money supply will be __________ when the LM curve is positively sloped, but not vertical. A) decrease; greater B) decrease; smaller C) increase; greater D) increase; smaller 6) With velocity constant and equal to 2, a $10 billion increase in the money supply shifts the LM curve to the right by A) $2 billion. B) $5 billion. C) $10 billion. D) $20 billion. 7) If velocity is constant and equal to 2, a $10 billion shift of the LM curve to the left will be produced by a __________ in the money supply. A) $5 billion increase B) $5 billion decrease C) $20 billion increase D) $20 billion decrease 8) If velocity is constant and equal to 5, a $20 billion shift of the LM curve to the right will be produced by a __________ in the money supply. A) $100 billion increase B) $100 billion decrease C) $4 billion increase D) $4 billion decrease 9) With velocity constant, an increase in the money supply multiplied by velocity yields the increase in equilibrium A) interest rates. B) money demand. C) price level. D) income. 10) Monetary policy has no effect on the equilibrium interest rate if A) the inflation rate is zero. B) the economy is in the liquidity trap. C) velocity is constant. D) the economy is at full employment.

Solution:

15% off for this assignment.

Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!

Why US?

100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

Original Writing

We complete all papers from scratch. You can get a plagiarism report.

Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.