The interest rate rises, Need help with a few Econ multiple

The interest rate rises

Assignment Help Microeconomics

Reference no: EM13868011

Need help with a few Econ multiple choice questions

16. When the interest rate rises,
A) planned investment falls.
B) planned investment rises.
C) planned investment will be unaffected.
D) equilibrium income increases.

22. Which of the following does not shift the IS curve?A) An increase in autonomous consumption.

B) An increase in government spending.
C) A decline in government spending.
D) A fall in the interest rate.

23. An appreciation of the U.S. dollar makes foreign goods cheaper relative to American goods, resulting in a ________ in net exports in the U.S. and a ________ shift of the IS curve in the U.S., everything else held constant.A) fall; leftward
B) rise; leftward
C) fall; rightward
D) rise; rightward

24. A shift in tastes toward foreign goods ________ net exports in the U.S. and causes the IS curve to shift to the ________ in the U.S., everything else held constant.A) decreases; right
B) decreases; left
C) increases; right
D) increases; left

25. 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; leftD) decreases; decreases; left

Reference no: EM13868011

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