In the IS-LM model, an increase in government spending in the goods ma

In the IS-LM model, an increase in government spending in the goods market has an impact on the money market because

a. it increases the money supply.
b. it increases income, which increases money demand.
c. it decreases income, which decreases money demand.
d. it increases interest rates, which decreases money demand.
e. none of the above.

ANSWER

B