the economics of money, banking, and financial markets

701 #

© 2014 Pearson Canada Inc.#

22. 
    

    The IS curve shifts to the left when ____.
    A) taxes increase
    B) government spending increases
    C) the money supply increases
    D) autonomous planned investment spending increases
    Answer: A
    Diff: 2 Type: MC Page Ref: 551
    Skill: Recall
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

    
    


23. 
    

    A decline in taxes ____ consumer expenditure and shifts the ____ curve to the
    ____, everything else held constant.
    A) raises; LM; right
    B) lowers; IS; left
    C) raises; IS; right
    D) lowers; LM; left
    Answer: C
    Diff: 2 Type: MC Page Ref: 551
    Skill: Recall
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

    
    


24. 
    

    A tax increase ____ disposable income, ____ consumption expenditure, and shifts
    the IS curve to the ____, everything else held constant.
    A) increases; increases; right
    B) increases; decreases; left
    C) decreases; increases; left
    D) decreases; decreases; left
    Answer: D
    Diff: 2 Type: MC Page Ref: 551
    Skill: Recall
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

    
    


25. 
    

    A tax cut ____ disposable income, ____ consumption expenditure, and shifts the
    IS curve to the ____, everything else held constant.
    A) increases; increases; right
    B) increases; decreases; right
    C) decreases; increases; left
    D) decreases; decreases; left
    Answer: A
    Diff: 2 Type: MC Page Ref: 551
    Skill: Recall
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output