14. Suppose that in an IS/LM fixed-price closed economy with unemployed resources the central bank increases the money supply. Which of the following would result? • A fall in consumption An increase in investment • A decrease in investment • A fall in government expenditure

14. Suppose that in an IS/LM fixed-price closed economy with unemployed resources the central bank increases the money supply. Which of the following would result? • A fall in consumption An increase in investment • A decrease in investment • A fall in government expenditure

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 13SCQ: Suppose the Federal Reserve begins to Increase the supply of money at an Increasing rate. What...

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14. Suppose that in an IS/LM fixed-price closed economy with unemployed resources the
central bank increases the money supply. Which of the following would result?
A fall in consumption
An increase in investment
A decrease in investment
A fall in government expenditure

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