Which of the Following Statements Concerning IS - MP Analysis

question 6

Multiple Choice

Which of the following statements concerning IS - MP analysis is true?

• A) For a given change in taxes, the IS curve will shift less than for an equal change in government spending.
• B) Changes in net exports arising from a change in interest rates causes a shift in the IS curve.
• C) A fall in the money supply shifts the LM curve to the right.
• D) Expansionary fiscal policy will cause the interest rate to fall.

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