In the IS-LM model, when government spending and taxes increase by the
In the IS-LM model, when government spending and taxes increase by the same amount
a. income and interest rates remain unchanged.
b. interest rates and income rise.
c. interest rates and income fall.
d. changes in interest rates are indeterminate but income rises.
e. none of the above.
ANSWER
B
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.