n the IS-LM model, an equal increase in government expenditure and tax will ...... , ....... and ........ a. increase income / increase interest rate / reduce investment. b. reduce income / reduce interest rate / increase investment. c. increase income / increase interest rate / leave investment unchanged. d. reduce income / reduce interest rate / leave investment unchanged e. leave income unchanged / leave interest rate unchanged / reduce investment.

n the IS-LM model, an equal increase in government expenditure and tax will ...... , ....... and ........ a. increase income / increase interest rate / reduce investment. b. reduce income / reduce interest rate / increase investment. c. increase income / increase interest rate / leave investment unchanged. d. reduce income / reduce interest rate / leave investment unchanged e. leave income unchanged / leave interest rate unchanged / reduce investment.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.A: The Simple Algebra Of Income Determination And The Multiplier

Problem 4TY

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