An increase in autonomous consumption leads to an increase in the equilibrium interest rate and equilibrium level of output in the IS-LM model.

Name: An increase in autonomous consumption leads to an increase in the equilibrium interest rate and equilibrium level of output in the IS-LM model.
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Question

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An increase in autonomous consumption shifts the IS curve to the right, leading to a higher equilibrium output and interest rate in the IS-LM model.

An Increase in Autonomous Consumption Leads to an Increase in the Equilibrium