Multiple Choice
Figure 7-2
-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.
Correct Answer:

Verified
Correct Answer:
Verified
Q10: Between March and November of 2001,the U.S.economy
Q11: Suppose that the government wants to increase
Q12: If the demand for money is M<sup>d</sup>
Q13: A lower interest elasticity of investment demand
Q14: The higher the interest sensitivity of investment,the<br>A)less
Q16: If interest rates and output rises,then<br>A)government spending
Q17: During Japan's economic slump in the early
Q18: Exogenous variables in the IS-LM model variables
Q19: Whenever fiscal policy actions,such as income tax
Q20: Traditional Keynesians tend to favor<br>A)monetary policy over