The increase in income in response to a fiscal expansion in the IS-LM is:
A) always less than in the Keynesian-cross model.
B) less than in the Keynesian-cross model unless the LM curve is vertical.
C) less than in the Keynesian-cross model unless the LM curve is horizontal.
D) less than in the Keynesian-cross model unless the IS curve is vertical.

Question

Quizplus · Accepted Answer

The Answer of The increase in income in response to a fiscal expansion in the IS-LM is:
A) always less than in the Keynesian-cross model.
B) less than in the Keynesian-cross model unless the LM curve is vertical.
C) less than in the Keynesian-cross model unless the LM curve is horizontal.
D) less than in the Keynesian-cross model unless the IS curve is vertical.

The Increase in Income in Response to a Fiscal Expansion