In the Ordinary Analysis of IS and LM Curves (Ignoring

question 16

Multiple Choice

In the ordinary analysis of IS and LM curves (ignoring the BP curve) ,

• A) expansionary fiscal policy shifts the IS curve to the left.
• B) expansionary monetary policy shifts the LM curve to the left.
• C) expansionary fiscal and expansionary monetary policy undertaken at the same time Will lead to an increase in the level of equilibrium income.
• D) expansionary fiscal policy and contractionary monetary policy acting together will Lead to a decline in the equilibrium interest rate.

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