In the IS-LM model when taxation increases, in short-run equilibrium, the interest rate ______ and output ______.
A) rises; falls
B) rises; rises
C) falls; rises
D) falls; falls
Correct Answer:
Verified
Q1: If the LM curve is vertical and
Q2: Use the following to answer questions
Exhibit:
Q4: Using the IS-LM analysis, if the LM
Q5: Use the following to answer questions :
Exhibit:
Q6: In the IS-LM analysis, the increase in
Q7: If the money supply increases, then in
Q8: The reason that the income response to
Q9: In the IS-LM model, changes in taxes
Q10: In the IS-LM model when M/P rises,
Q11: Use the following to answer questions :
Exhibit:
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