Figure 4-6

-In Figure 4-6 above,with IS₀ shifting to IS₁ against the upward-sloping LM curve,crowding-out is the result that
A)income stays at YO₃.
B)income rises to Y₁ instead of to Y₂.
C)income rises to Y₁ instead of staying at YO₃.
D)income rises to Y₂ instead of to Y₁.

Question

Figure 4-6
 
-In Figure 4-6 above,with IS₀ shifting to IS₁ against the upward-sloping LM curve,crowding-out is the result that
A)income stays at YO₃. 
B)income rises to Y₁ instead of to Y₂. 
C)income rises to Y₁ instead of staying at YO₃. 
D)income rises to Y₂ instead of to Y₁.

Quizplus · Accepted Answer

The Answer of Figure 4-6
 
-In Figure 4-6 above,with IS₀ shifting to IS₁ against the upward-sloping LM curve,crowding-out is the result that
A)income stays at YO₃. 
B)income rises to Y₁ instead of to Y₂. 
C)income rises to Y₁ instead of staying at YO₃. 
D)income rises to Y₂ instead of to Y₁.

Figure 4-6 -In Figure 4-6 Above,with IS₀ Shifting to IS₁ Against the to IS₁