Figure 4-7 -Using the Information Contained in Figure 4-7 Above,the Initial Equilibrium

Multiple Choice

Figure 4-7

-Using the information contained in Figure 4-7 above,the initial equilibrium Y is 3500.If there is 500 of new fiscal stimulus and a constant money supply,Y will increase to ________ and the interest rate will ________.

A) 4000;remain constant
B) 4000;rise to 10%
C) 4500;rise to 12.5%
D) 5500;remain constant