In the IS-LM model, a decrease in government purchases leads to a(n) _ in planned expenditures, a(n) _ in total income, a(n) in money demand, and a(n) _ in the equilibrium interest rate.
A) decrease; decrease; decrease; decrease
B) increases; increase; increases; increase
C) decrease; decrease; increase; increase
D) increase; increase; decrease; decrease
Correct Answer:
Verified
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