In the IS-LM model, changes in government purchases lead to larger changes in GDP if
A) money demand becomes less sensitive to GDP.
B) money demand becomes less sensitive to the interest rate.
C) they are offset by increases in taxes.
D) the LM curve becomes steeper.
E) none of the above.

Question

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The Answer of In the IS-LM model, changes in government purchases lead to larger changes in GDP if
A) money demand becomes less sensitive to GDP.
B) money demand becomes less sensitive to the interest rate.
C) they are offset by increases in taxes.
D) the LM curve becomes steeper.
E) none of the above.

In the IS-LM Model, Changes in Government Purchases Lead to Larger