what is liquidity preference model and which choice is correct? 13. Using the liquidity-preference model, when the
Fantastic news! We've Found the answer you've been seeking!
Question:
what is liquidity preference model and which choice is correct?
Transcribed Image Text:
13. Using the liquidity-preference model, when the Federal Reserve decreases the money supply, (a) the equilibrium interest rate increases. (b) the aggregate-demand curve shifts to the right. (c) the quantity of goods and services demanded is unchanged for a given price level. (d) the short-run aggregate-supply curve shifts to the left. 13. Using the liquidity-preference model, when the Federal Reserve decreases the money supply, (a) the equilibrium interest rate increases. (b) the aggregate-demand curve shifts to the right. (c) the quantity of goods and services demanded is unchanged for a given price level. (d) the short-run aggregate-supply curve shifts to the left.
Expert Answer:
Answer rating: 100% (QA)
Answer Liquidity preference model or the Keynesian ... View the full answer
Related Book For
Macroeconomics
ISBN: 978-1319120054
3rd Canadian edition
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
Posted Date:
Students also viewed these economics questions
-
Is there such a thing as the correct choice for a class width? Is there such a thing as a poor choice for a class width? Explain your reasoning.
-
Which type of cash withdrawal presents very little liquidity risk? Which type of cash withdrawal is a source of significant liquidity risk for DIs?
-
What are liquidity ratios? Given an example of a liquidity ratio and how it helps evaluate a companys performance or future performance from an outsiders view.
-
Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2020. Average Annual Average Premium (Extra Rate of Return return versus Treasury (8) bills) (%) Portfolio...
-
Construct a perceptual map for the following products or services: (a) Business schools in your state or region, (b) Software packages, (c) Video rental stores. Label the axes with the dimensions you...
-
Explain the impact of an increase in the level of activity (or cost driver) on (a) total variable cost and (b) variable cost per unit.
-
Are there any circumstances when top management will be interested in detailed ecological accounting information? Explain.
-
Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows: During the next...
-
A shock wave with the pressure ratio of 4.5 propagates from left to right in a quiescent air with the following parameters: p = 100 kPa, T = 300 K. Another shock wave with the pressure ratio of 3.2...
-
Case 11-21 (Algo) Analytical case-complete an income statement and balance sheet using financial ratio data Financial ratios computed for Whittaker Incorporated include the following: Current ratio...
-
The radii of the two end-discs of a container (as shown) are r and r, (where r S rz in general) and its height h. I drill two identical holes at the centers of two end- discs to enable a draining...
-
Crowe Company purchased a heavy-duty truck on July 1, 2012, for 30,000. It was estimated that it would have a useful life of 10 years and then would have a residual value of 6,000. The company uses...
-
Silverman Company purchased machinery for $162,000 on January 1, 2015. It is estimated that the machinery will have a useful life of 20 years, residual value of $15,000, production of 84,000 units,...
-
Chen Enterprises made the following entry on December 31, 2015. What entry would Hibernia Bank make regarding its outstanding loan to Chen Enterprises? Explain why this must be the case. Interest...
-
On October 10, 2015, Executor Co. entered into a contract with Belisle Inc. to transfer Executors specialty products (sales value of 10,000, cost of 6,500) on December 15, 2015. Belisle agrees to...
-
Go to the Web. Locate the decisions of your states highest appellate court. Find a recent decision in which the court discussed the definition of one of the crimes covered. If you cannot locate such...
-
Tonya recognizes that one example of the impact of censorship on Internet service providers (ISPs) is that _____. a. government authorities or copyright holders rarely submit defamation or copyright...
-
Classify each of the following as direct costs or indirect costs of operating the Pediatrics ward for children at the Cleveland Clinic: a. Wi-Fi covering the entire hospital campus b. Net cost of...
-
The governments budget surplus in Macroland has risen consistently over the past five years. Two government policy makers disagree as to why this has happened. One argues that a rising budget surplus...
-
Based on the exchange rates for the trading days of 2016 and 2017, as shown in the accompanying table, did the Canadian dollar appreciate or depreciate over the year? Did the movement in the value of...
-
In each of the following situations, identify which of the twelve principles is at work. a. You choose to purchase your textbooks online through Chegg or Text book rental. ca rather than paying a...
-
On January 1, 2017, Big Rock Brewery purchased a van for \(\$ 45,000\). Big Rock expects the van to have a useful life of five years and a residual value of \(\$ 5,000\). The depreciation method used...
-
You are reviewing the financial statements of Rising Yeast Co. During 2020, Rising Yeast purchased two other companies for \(\$ 17\) million. Also during fiscal 2020, Rising Yeast made capital...
-
Suppose Jaguar Automobiles Ltd. paid \(\$ 500,000\) to research a new global positioning system. Jaguar also paid \(\$ 1,200,000\) to acquire a patent on a new motor. After readying the motor for...
Study smarter with the SolutionInn App