In the IS model,assuming that the real interest rate does not change,an increase in autonomous net exports causes total investment,planned plus unplanned,to ________.
A) fall,then rise back to its initial level
B) fall,then rise above its initial level
C) rise,then fall back to its initial level
D) all of the above
E) none of the above
Correct Answer:
Verified
Q63: If the government reduces spending _.
A)the IS
Q64: An increase in autonomous consumption _.
A)lowers planned
Q65: A decrease in autonomous consumption _.
A)raises planned
Q66: A decrease in autonomous consumption _.
A)lowers planned
Q67: In the IS model,assuming that the real
Q69: In the IS model,assuming that the real
Q70: The IS curve shifts to the right
Q71: If the government raises taxes _.
A)planned expenditures
Q72: The IS curve shifts to the left
Q73: The IS curve shifts to the left
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