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All Else Being Equal, an Increase in Government Spending Would

Question 100

Multiple Choice

All else being equal, an increase in government spending would shift the ______ line to the ______, causing interest rates to _______ and the trade balance to _______.


A) LM; right; fall; fall
B) IS; right; rise; rise
C) LM; left; rise; rise
D) IS; right; fall; fall

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