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    Macroeconomics Study Set 39
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    Exam 12: Aggregate Demand Ii: Applying the Is-Lm Model
  5. Question
    In the IS-LM Model, Changes in Taxes Initially Affect Planned
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In the IS-LM Model, Changes in Taxes Initially Affect Planned

Question 76

Question 76

Multiple Choice

In the IS-LM model, changes in taxes initially affect planned expenditures through:


A) consumption.
B) investment.
C) government spending.
D) the interest rate.

Correct Answer:

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