# B4 - Question 1 0.1 out of 0.1 points(Exhibit IS-LM Fiscal Policy Reference Ref 11-1(Exhibit IS-LM Fiscal Policy Based on the graph starting from

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Question 1 0.1 out of 0.1 points (Exhibit: IS-LM Fiscal Policy) Reference: Ref 11-1 (Exhibit: IS-LM Fiscal Policy) Based on the graph, starting from equilibrium at interest rate r 1 and income Y 1 , a tax cut would generate the new equilibrium combination of interest rate and income: Answer Selected Answer: Correct Answer: E Question 2 0.1 out of 0.1 points In the IS-LM model, a decrease in government purchases leads to a(n) ______ in planned expenditures, a(n) ______ in total income, a(n) ______ in money demand, and a(n) ______ in the equilibrium interest rate. Answer Selected Answer: Correct Answer: E Question 3 0.1 out of 0.1 points In the IS-LM model when M rises but P remains constant, in short-run equilibrium, in the usual case, the interest rate ______ and output ______. Answer Selected Answer: Correct Answer: E Question 4

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0.1 out of 0.1 points If Congress passed a tax increase at the request of the president to reduce the budget deficit, but the Fed held the money supply constant, then the two policies together would
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## This note was uploaded on 06/06/2010 for the course ECON 312 taught by Professor Lklj during the Spring '10 term at Abilene Christian University.

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B4 - Question 1 0.1 out of 0.1 points(Exhibit IS-LM Fiscal Policy Reference Ref 11-1(Exhibit IS-LM Fiscal Policy Based on the graph starting from

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