Multiple Choice
Everything else held constant,changes in the interest rate affect planned investment spending and hence the equilibrium level of output,but this change in investment spending
A) merely causes a movement along the IS curve and not a shift.
B) is crowded out by higher taxes.
C) is crowded out by higher government spending.
D) is crowded out by lower consumer expenditures.
Correct Answer:
Verified
Correct Answer:
Verified
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