In figure 24 1 the economy moves from point 4 to

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97) In Figure 24-1, the economy moves from point 4 to point 3 whenever (a) government spending increases. (b) investment expenditures unrelated to the interest rate increase. (c) the money supply increases. (d) either (a) or (b) occurs. Answer: D Question Status: Previous Edition 98) In Figure 24-1, the economy moves from point 4 to point 3 whenever 99) In Figure 24-1, the economy moves from point 1 to point 3 whenever Chapter 24 Monetary and Fiscal Policy in the ISLM Model 881 100) In Figure 24-1, the economy moves from point 3 to point 1 whenever 101) In Figure 24-1, the economy moves from point 2 to point 4 whenever (a) both government spending and the money supply increase. (b) both taxes and the money supply increase. (c) both government spending and taxes increase. (d) both government spending and the money supply decrease. Answer: B Question Status: Previous Edition 102) In Figure 24-1, the economy moves from point 4 to point 2 whenever 103) In Figure 24-1, the economy moves from point 2 to point 4 whenever 104) In Figure 24-1, the economy moves from point 4 to point 2 whenever
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882 Frederic S. Mishkin • Economics of Money, Banking, and Financial Markets, Seventh Edition Figure 24-2
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