Option 1.
Explanation: In liquidity trap, people hold the additional money supply and they try to avoid bonds.
Question 1 0.2 pts Which of the following conditions will most likely coincide with the existence...
5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a change in investment expectations d. both a and c e. both b and c 6. In the Keynesian theory of liquidity demand and the interest rate which of the following occurs during excess supply of money. a. individuals sell bonds, driving interest rates down...
Question 4 0.2 pts When a liquidity trap situation exists, the most appropriate policy to increase output would be: a central bank purchase of bonds. an increase in government spending. O an increase in taxes. a central bank sale of bonds. a decrease in government spending.
can someone explain please Question 5 0/2 pts Which of the following is most likely to cause an increase in the inflation rate? a reduction in the percentage of workers who are in labor unions an increase in competition between firms an increase in the non-labor costs of production an increase in the unemployment rate Rising unemployment tends to put downward pressure on wages and prices. In the figure below, when employment is at the level at point C, the...
Question 2 0.2 pts An increase in government spending will cause which of the following when a liquidity trap situation exists? Output will increase. The interest rate will increase. Output will decrease. The interest rate will decrease. Output will not change.
Incorrect Question 25 0/1 pts When accounting profits are positive, economic profits must be positive. will be negative. will equal zero could be positive, negative or zero. 0/1 pts 4. асоте Question 26 aprile Which of the following is correc real interest strate - nominal interest rate - anticipated inflation rate real interest rate = nominal interest rate + anticipated inflation rate real interest rate - nominal interest rate - anticipated inflation rate amina 7 anticipated real interest rate inflation...
Question 5 0.2 pts What good is most likely to have an income elasticity of demand equal to 8 college coursework used clothing toilet paper a five-star hotel a doctor's visit 0.2 pts D | Question 6 A perfectly elastic supply curve is horizontal is vertical O is downward sloping
Please help with these questions: Question 18 0.2 pts Which one of the following pairs of goods is likely to have a negative cross- price elasticity of demand? O manicures and pedicures sofas and dining room tables O purses and backpacks shoes and socks trucks and sedans Question 19 0.2 pts When two goods are substitutes for each other, what will the cross-price elasticity be? O It will be positive O It is unaffected by goods being substitutes O The...
Carefully use the following information to answer below questions! Suppose you are given IS: Y 1250-50r and LM: Y 450+30r, a 2.5 M - 700 and P 2, M-(/3)Y+200-10r, nitial equilibrium Y-750, r-10 and . a) Evaluate numerically only the impact of fiscal policy on the income level Y) when government expenditure is increased by S5 billions, under the conditions when: i) Sensitivity of investment demand to the interest rate is 0.001 and 100. Less sensitivity of Investment to the...
Question 1 1.7 pts Whenever the expected inflation rate is positive The real interest rate is negative O the real interest rate is greater than the nominal interest rate O The nominal interest rate must be equal to the real interest rate The real interest rate is positive O None of the above
Question 6 0.2 pts Which statement about intermolecular forces is true? Only occur in ionic bonds. They have to be overcome to decompose a substance. These forces hold atoms together in a molecule. They are responsible for the physical properties of matter. Question 7 0.2 pts What intermolecular force is responsible for the attraction between an ion and a polar molecule? O Dipole-dipole interaction Hydrogen bonding lon-dipole interaction London dispersion forces Question 8 0.2 pts of liquids will be related...