In the long-run ISLM model and with everything else held constant,the long-run effect of a contractionary fiscal policy is to ________ real output and ________ the interest rate.
A)not change;not change
B)decrease;decrease
C)decrease;not change
D)not change;decrease

Question

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The Answer of In the long-run ISLM model and with everything else held constant,the long-run effect of a contractionary fiscal policy is to ________ real output and ________ the interest rate.
A)not change;not change
B)decrease;decrease
C)decrease;not change
D)not change;decrease

In the Long-Run ISLM Model and with Everything Else Held