Suppose That the IS Curve Is Stable and Money Demand

question 22

Multiple Choice

Suppose that the IS curve is stable and money demand is lower than forecasted.If the Fed is targeting the interest rate,it notices the rate is ________ its target,and action to correct this,shifting the LM curve to the ________,causes GDP to ________ natural GDP.

• A)below,right,fall back toward
• B)below,right,rise further from
• C)below,left,return to
• D)above,left,fall back from
• E)above,right,rise further from

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Definitions:

Gate Channel Resistance

The resistance encountered in the channel of a gate in semiconductor devices, affecting electron flow and the device’s electrical characteristics.

Electronic Relay Switch

A switch that uses an electronic control to open or close a circuit, commonly used in vehicle electrical systems.

Scopemeter

A hand-held device that functions as DMM and an oscilloscope.

Hexadecimal Code

J1939 messages use hexadecimal code. To do this 16 numeric symbols must be used: 0 to 9 are used for the first nine digits, and the letters A through F are used to represent 10 to 16.