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

Question 31

Multiple Choice

With normally-sloped IS and LM curves,an increase in government expenditure ________ consumption expenditure since autonomous consumption ________ while induced consumption ________.


A) can raise or lower,falls,rises
B) can raise or lower,rises,falls
C) must decrease,falls,also falls
D) must decrease,rises,falls
E) must increase,rises,also rises

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