An increase in investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift up, the equilibrium level of aggregate output to__________ and the IS curve to shift to the__________ everything else held constant. A) fall; right B) rise; left C) fall; left D) rise: right

MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section9.A: The Simple Algebra Of Income Determination And The Multiplier
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Please answer all the three

An increase in investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift up, the equilibrium level of aggregate output to__________ and the IS curve to shift to the__________ everything else held constant.

A) fall; right

B) rise; left

C) fall; left

D) rise: right

Which of the following statements concerning IS-MP analysis is true?

A) Changes in net exports arising from a change in interest rates causes a shift in the IS curve.

B) Expansionary fiscal policy will cause the interest rate to fall.

C) A fall in the money supply shifts the LM curve to the right.

D) For a given change in taxes, the IS curve will shift less than for an equal change in government spending.

LVTS participants with positive settlement balances at the end of the day.________

A) are paid the overnight rate

B) are paid the bank rate less 50 basis points

C) are paid the prime rate

D) are paid the bank rate

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