Consider an Initial IS-LM Equilibrium with Normally-Sloped Curves

Multiple Choice

Consider an initial IS-LM equilibrium with normally-sloped curves.An increase in government spending shifts the ________ by a horizontal distance equal to the change in government spending ________.

A) IS curve to the right,divided by the Chapter 3 multiplier
B) IS curve to the right,times the Chapter 3 multiplier
C) IS curve to the left,times the interest rate at the initial equilibrium
D) LM curve to the right,divided by the Chapter 3 multiplier
E) LM curve to the right,divided by the interest rate at the initial equilibrium