An Increase in Investment Demand for Any Given Level of Income

question 121

Multiple Choice

An increase in investment demand for any given level of income and interest rates-due, for example, to more optimistic "animal spirits"-will, within the IS-LM framework, ______ output and ______ interest rates.

• A) increase; lower
• B) increase; raise
• C) lower; lower
• D) lower; raise

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