the economics of money, banking, and financial markets

698 #

© 2014 Pearson Canada Inc.#

12. 
    

    A decline in autonomous planned investment spending causes the equilibrium level of
    aggregate output to ____ and shifts the ____ curve to the ____, everything else
    held constant.
    A) rise; LM; right
    B) rise; IS; right
    C) fall; IS; left
    D) fall; LM; left
    Answer: C
    Diff: 2 Type: MC Page Ref: 553
    Skill: Recall
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

    
    


13. 
    

    A decrease in investment spending because companies become more pessimistic about
    investment profitability causes the aggregate demand function to shift ____ and the
    equilibrium level of aggregate output to ____, everything else held constant.
    A) up; rise
    B) up; fall
    C) down; rise
    D) down; fall
    Answer: D
    Diff: 2 Type: MC Page Ref: 553
    Skill: Recall
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

    
    


14. 
    

    An increase in investment spending because companies become more optimistic about
    investment profitability causes the aggregate demand function to shift ____ and the
    equilibrium level of aggregate output to ____, everything else held constant.
    A) up; rise
    B) up; fall
    C) down; rise
    D) down; fall
    Answer: A
    Diff: 2 Type: MC Page Ref: 553
    Skill: Recall
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output