An Increase in Government Spending Raises Income

Multiple Choice

An increase in government spending raises income:

A) and the interest rate in the short run, but leaves both unchanged in the long run.
B) in the short run, but leaves it unchanged in the long run, while lowering investment.
C) in the short run, but leaves it unchanged in the long run, while lowering consumption.
D) and the interest rate in both the short and long runs.