With respect to Figure 7-2, an increase in government spending a. shi
With respect to Figure 7-2, an increase in government spending
a. shifts the IS curve to the left by G(− b/1 − b).
b. shifts the IS curve to the right by G(1 − b/1 − b).
c. shifts the IS curve to the right by G(1/1 − b).
d. does not shift the IS curve.
ANSWER
C
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