If the IS Curve Is Negatively Sloped and the LM

Multiple Choice

If the IS curve is negatively sloped and the LM curve is positively sloped

A) an increase in government expenditures will raise real GDP and lower interest rates.
B) a fall in the real money supply will raise real GDP and lower the interest rate.
C) an increase in taxes and an increase in money supply will lower the interest rate and give little or no change in real GDP.
D) an increase in taxes and a fall in the money supply will raise the interest rate and give little or no change in real GDP.