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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