Question
In the classical IS-LM framework with a vertical LM
curve, the government increases expenditure financed by bond issuance. Which of the following outcomes correctly describes the complete effect?Solution
Classical LM is vertical — fixed at full-employment output (perfectly interest-inelastic money demand). Any rightward IS shift only raises the interest rate until private investment falls by exactly ΔG — 100% crowding out. Output remains unchanged. This is the classical neutrality of fiscal policy. • (C) describes the Keynesian case (upward-sloping LM) with partial crowding out. • (D) is wrong — bond issuance does NOT expand money supply unless the central bank monetises the debt.
Select the correct antonym of the given word.
ProsperousÂ
Improve the bold part of the sentence. Choose “No improvement” if the sentence is correct.
She hardly had no time to finish the report befo...
select the most appropriate option to fill in the blank .
Has he ……for a job in this college .
Choose the most appropriate antonym of the bold word.
The officer was lenient in his judgement.
Select the most appropriate option for the given blank.
He succeeded ______ his hard work and determination.
Select the most appropriate option for the given blank.
The road was closed ______ heavy rainfall.
Select the most appropriate option for the given blank.
The meeting was postponed ______ the absence of key members.
Find the part of the sentence that has an error.
He is senior than all other officers in the department.
Select the correct synonym of the given word.
Reproduce
select the wrongly spelt word
