In the Keynesian-Cross Model,as the Interest Rate Increases,the Equilibrium Level

question 61

Multiple Choice

In the Keynesian-cross model,as the interest rate increases,the equilibrium level of income ______,whereas in the loanable funds model,as the level of income increases,the equilibrium level of the interest rate ______.

• A) increases; increases
• B) increases; decreases
• C) decreases; decreases
• D) decreases; increases