Everything Else Held Constant,changes in the Interest Rate Affect Planned

question 87

Multiple Choice

Everything else held constant,changes in the interest rate affect planned investment spending and hence the equilibrium level of output,but this change in investment spending

• A)merely causes a movement along the IS curve and not a shift.
• B)is crowded out by higher taxes.
• C)is crowded out by higher government spending.
• D)is crowded out by lower consumer expenditures.

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