The IS-LM Model Predicts That a Temporary Beneficial Supply Shock

Multiple Choice

The IS-LM model predicts that a temporary beneficial supply shock

A) increases output, national saving, and investment, but not the real interest rate.
B) increases output, national saving, and the real interest rate, but not investment.
C) increases the real interest rate, investment, and output, but not national saving.
D) increases output, national saving, investment, and the real interest rate.