Suppose That a Change in the Fiscal/monetary Policy Mix Shifts

question 5

Multiple Choice

Suppose that a change in the fiscal/monetary policy mix shifts the IS and LM curves downward by exactly the same amount.The ________ in national saving is accompanied by ________ domestic investment due to the ________ in the interest rate.

• A)fall,equally lower,lower
• B)fall,unchanged,unchanged
• C)rise,unchanged,unchanged
• D)rise,equally higher,lower
• E)rise,equally lower,higher

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