the economics of money, banking, and financial markets

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31. 
    

    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; MP; right
    B) rise; IS; right
    C) fall; IS; left
    D) fall; MP; left
    Answer: C
    Diff: 2 Type: MC Page Ref: 564
    Skill: Recall
    Objective List: 23.1 Apply the IS-MP framework for the determination of aggregate output and
    the interest rate

    
    


32. 
    

    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: 564
    Skill: Recall
    Objective List: 23.1 Apply the IS-MP framework for the determination of aggregate output and
    the interest rate

    
    


33. 
    

    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: 564
    Skill: Recall
    Objective List: 23.1 Apply the IS-MP framework for the determination of aggregate output and
    the interest rate