Based on Our Understanding of the IS- LM Model, We

question 82

Multiple Choice

Based on our understanding of the IS- LM model, we know with certainty that the policy mix in Australia in response to the global crisis would have resulted in:

• A) an increase in the interest rate.
• B) an increase in output.
• C) no change in output.
• D) a decrease in the interest rate.
• E) a decrease in output.

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