From an Initial IS-LM Equilibrium with a Normally-Sloped IS Curve

question 120

Multiple Choice

From an initial IS-LM equilibrium with a normally-sloped IS curve and a vertical LM curve,the money supply increases.A the new IS-LM equilibrium we have

• A)higher income and a lower interest rate.
• B)higher income and an unchanged interest rate.
• C)an unchanged income and a lower interest rate.
• D)lower income and an unchanged interest rate.
• E)an unchanged income and a higher interest rate.

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Definitions:

English Colonies

Territories in the Americas and other parts of the world that were under the control and administration of the English crown from the late 16th to early 18th centuries.

Mulatto Class

A historical term referring to a social class or group composed of people of mixed European and African ancestry, often associated with colonial and slave societies.

Spanish Empire

A historical empire that included territories and colonies across the globe, known for its vast reach and wealth in the 16th to 18th centuries.

British North America

Territories in North America under British rule before the formation of the United States and Canada, encompassing colonies that later became part of these and other countries.