Figure 4-6 -In the Figure Above, Suppose We Are Initially at Point

Multiple Choice

Figure 4-6
-In the figure above, suppose we are initially at point 2. A reduction in government spending causes income to change by ________ and the interest rate to change by ________ than would be the case in the Chapter 3 model.

A) more, more
B) more, less
C) less, more
D) less, less