With normally-sloped IS and LM curves,an increase in government spending ________ the interest rate,which ________ autonomous planned expenditure,resulting in a final increase in income ________ than what the government spending increase would have produced in the Chapter 3 model.
A) lowers,raises,greater
B) lowers,lowers,greater
C) raises,lowers,less
D) raises,raises,less
E) raises,raises,greater
Correct Answer:
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Q83: Figure 4-1 Q84: Figure 4-6 Q85: Suppose the Fed changes the interest rate Q86: A daily auction at the Chicago Board Q87: Crowding-out is eliminated when the LM curve Q89: Suppose the government increases its expenditures by Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents