Refer to the Information Provided in Figure 11

Multiple Choice

Refer to the information provided in Figure 11.5 below to answer the questions that follow. Figure 11.5
-Refer to Figure 11.5. As a result of an increase in government spending, the equilibrium interest rate ________ and the equilibrium output level ________.

A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases