With Normally-Sloped IS and LM Curves,an Increase in Government Spending

Multiple Choice

With normally-sloped IS and LM curves,an increase in government spending ________ the interest rate,which ________ autonomous planned expenditure,resulting in a final increase in income ________ than what the government spending increase would have produced in the Chapter 3 model.

A) lowers,raises,greater
B) lowers,lowers,greater
C) raises,lowers,less
D) raises,raises,less
E) raises,raises,greater