25 Points The appropriate monetary policy response to fiscal crowding out.
That’s right! What is increase the money supply? Click here for final Jeopardy
Final Jeopardy The final Jeopardy Question is :
1.Describe the sequence of an easy monetary policy. What are its effects on i-rates, Investment, AD, and RGDP. Additionally, what is the canceling potential and the effect on net exports?
DmDm Investment Demand 10 8 6 0 10 8 6 0 Monetary Policy and Equilibrium GDP AD 1 AD 2 AD 3 S m1 AS P1P1 S m2 P2P2 S m3 P3P3 Price level Real rate of interest, i Real domestic output, GDP Quantity of money demanded and suppliedAmount of planned investment, I RiRRiR MEI Long Run Effects: 1.Increased planned investment will lead to increased AS 2. i down = international $ down, X up 3. Canceling effect: AD up, MD up, i up, and I down, = AD down