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In the Ordinary Analysis of IS and LM Curves (Ignoring

Question 2

Multiple Choice

In the ordinary analysis of IS and LM curves (ignoring the BP curve) ,


A) expansionary fiscal policy shifts the IS curve to the left.
B) expansionary monetary policy shifts the LM curve to the left.
C) expansionary fiscal and expansionary monetary policy undertaken at the same time Will lead to an increase in the level of equilibrium income.
D) expansionary fiscal policy and contractionary monetary policy acting together will Lead to a decline in the equilibrium interest rate.

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