Based on Our Understanding of the IS-LM Model That Takes

Multiple Choice

Based on our understanding of the IS-LM model that takes into account dynamics,we know that an increase in government spending will cause

A) a gradual increase in i and gradual increase in Y.
B) an immediate increase in Y and immediate drop in i.
C) an immediate increase in i and no initial change in Y.
D) a gradual increase in i and an immediate increase in Y.