Starting from equilibrium and using the ISLM framework, a decrease in investment leads to
A) lower interest rates and higher income.
B) higher interest rates and higher income.
C) lower interest rates and lower income.
D) higher interest rates and lower income.
Correct Answer:
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Q74: Starting from equilibrium in the ISLM framework,
Q75: Complete crowding out occurs when the
A) IS
Q76: The flatter is the LM curve
A) the
Q77: "Even if there is a liquidity trap
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A) the more
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A)
Q81: With a decrease in government expenditure we
A)
Q83: When the LM curve is horizontal,
A) fiscal
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A)
Q99: With a rise in government expenditure we
A)
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