The Hunger Games Jeopardy
In response to recent rebellions in the districts, the capitol issues a wave of bonds in the high billions which they use to mobilize more soldiers. How does this affect the Y and R of the ISLM curve? Which of the curves shift and how?
The IS curve shifts to right and the LM curve shifts to the left. This increases both Y and R.
At the end of the series, District 12 collapses and the demand for money quickly increases. How will R and Y be affected?
Y decline
R increases
Panem does a monetary stimulus In the short run since the demand is too low, this looks great, but what could happen to R and Y in the long run if the stimulus is too large?
R increases
Y decrease
During the early years of Panem rebuilding after the rebellion, the government cuts taxes to help poorer districts rebuild and recover. At the same time, the weak banking systems leave people to hoard cash. How would R, Y, and the how will the ISLM curves be affected?
IS curve shifts right
LM curve shifts left
R: rises
Y: decreases
The capitol is preparing for the 50th Hunger Games anniversary in which they want to be more extravagant than ever. As a result, they decide to lower the reserve ratios of banks and implements tax cuts. How does this affect the Y and R of the ISLM curve? Which of the curves shift and how?
The IS curve and the LM shift to the right. Thus, it is inconclusive whether Y or R decreases or increases.