If the LM curve is vertical and government spending rises by G, in the IS-LM analysis, then equilibrium income rises by:
A) G/(1 - MPC) .
B) more than zero but less than G/(1 - MPC) .
C) G.
D) zero.
Correct Answer:
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Q3: In the IS-LM model when taxation increases,
Q4: Using the IS-LM analysis, if the LM
Q5: Use the following to answer questions :
Exhibit:
Q6: In the IS-LM analysis, the increase in
Q7: If the money supply increases, then in
Q8: The reason that the income response to
Q9: In the IS-LM model, changes in taxes
Q10: In the IS-LM model when M/P rises,
Q11: Use the following to answer questions :
Exhibit:
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