Under Fixed Exchange Rates,when a Central Bank Increases Money Supply,it

question 43

Multiple Choice

Under fixed exchange rates,when a central bank increases money supply,it first shifts the LM curve to the ______ and later shifts ______.

• A) left; the LM curve to the right.
• B) left; the IS curve to the right.
• C) right; the LM curve to the left.
• D) right; the IS curve to the right.

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Definitions:

Marginal Revenue Curve

A graphical representation showing the additional revenue that is generated by selling one more unit of a good or service.

Marginal Revenue

The income enhancement from the sale of one more unit of a product or service.

Total Revenue

The total amount of money a company receives from selling its goods or services, calculated by multiplying the price by the quantity sold.

Total Revenue

The full amount of income generated by the sale of goods or services before any costs are deducted.