Within the IS-LM curve model,an increase in government spending financed by printing money will always
A)have no impact on income.
B)lower income and raise the interest rate.
C)increase the interest rate.
D)lower the interest rate and increase income.
E)increase income.

Question

Quizplus · Accepted Answer

An increase in government spending financed by printing money shifts the IS curve to the right and the LM curve to the right, leading to an increase in income.

Within the IS-LM Curve Model,an Increase in Government Spending Financed