Multiple Choice
Suppose fiscal policy makers implement a policy to reduce the size of a budget deficit.Based on the IS-LM model,we know with certainty that the following will occur as a result of this fiscal policy action.
A) Investment spending will decrease.
B) Investment spending will increase.
C) There will be no change in investment spending.
D) Investment spending may increase, decrease, or not change.
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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Q7: A reasonable dynamic assumption for the IS-LM
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