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EC 302 - EXAM 2 - MSU QUESTIONS AND 100% CORRECT ANSWERS

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EC 302 - EXAM 2 - MSU QUESTIONS AND 100% CORRECT ANSWERS

Institution
EC 302
Course
EC 302

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An increase in government purchases shifts the ___________ as desired saving falls,
demand for goods rise raising real interest rate


Give this one a try later!


IS cure up and right




Insider-Outsider

, Give this one a try later!


workers who retain employment during recession may refuse to work with
previously unemployed workers who offer to work for less than the current
wage




An increase in nominal money supply leads the _______ as when real money supply
increases, it lowers real interest rate that clears the asset market


Give this one a try later!


LM curve shifting down and right




An increase in effective rate on capital shifts the _______ as desired investment falls,
lowering the real interest rate that clears the goods market


Give this one a try later!


IS curve down and to the left




Factors increasing real money demanded


Give this one a try later!


An increase in wealth

an increase in the risk of alternative assets relative to the risk of holding
money


a decline in the liquidity of alternative assets and

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EC 302
Course
EC 302

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