Figure 7-2
-With respect to Figure 7-2,an increase in government spending
A) shifts the IS curve to the left by G(? b/1 ? b) .
B) shifts the IS curve to the right by G(1 ? b/1 ? b) .
C) shifts the IS curve to the right by G(1/1 ? b) .
D) does not shift the IS curve.
Correct Answer:
Verified
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