Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions :
Exhibit: Keynesian Cross and Loanable Funds

-(Exhibit: Keynesian Cross and Loanable Funds) Both graphs illustrate the inverse relationship between the equilibrium interest rate and the equilibrium level of income.Planned expenditures increase in the Keynesian-cross model as a result of ______,and saving increases in the loanable funds model as a result of ______.

A) an increase in taxes; an increase in real money balances
B) a decrease in the interest rate; an increase in income
C) a decrease in velocity; an increase in government spending
D) an increase in the interest rate; a decrease in income