Suppose that a change in the fiscal/monetary policy mix shifts the IS and LM curves downward by exactly the same amount.The ________ in national saving is accompanied by ________ domestic investment due to the ________ in the interest rate.
A) fall,equally lower,lower
B) fall,unchanged,unchanged
C) rise,unchanged,unchanged
D) rise,equally higher,lower
E) rise,equally lower,higher
Correct Answer:
Verified
Q117: From 1968 till 1980,budget deficit was on
Q118: During 1998-2001 the government budget
A)moved deeper into
Q119: Which of the following contributed to the
Q120: Which of the following is NOT an
Q121: Elimination of the corporate income tax would
Q123: In a recession,automatic stabilization _ tax revenues
Q124: The government deficit does NOT place a
Q125: The IS-LM model tells us that output
Q126: If the U.S.government sells bonds to fund
Q127: Borrowing to fund investment projects until the
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