Which of the following statements concerning

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88) Which of the following statements concerning Keynesian ISLM analysis are true? (a) For a given change in taxes, the IS curve will shift less than for an equal change in government spending. (b) An increase in net exports arising from a reduction in interest rates causes the IS curve to shift rightward. (c) A rise in the money supply shifts the LM curve to the left. (d) Only (a) and (b) of the above. Answer: A Question Status: Revised Figure 24-1 89) In Figure 24-1, the economy moves from point 1 to point 2 whenever Chapter 24 Monetary and Fiscal Policy in the ISLM Model 879 90) In Figure 24-1, the economy moves from point 1 to point 2 whenever 91) In Figure 24-1, the economy moves from point 1 to point 2 whenever 92) In Figure 24-1, the economy moves from point 1 to point 4 whenever (a) government spending increases. (b) the money supply increases. (c) taxes are increased. (d) either (a) or (b) occurs. Answer: B Question Status: Previous Edition 93) In Figure 24-1, the economy moves from point 2 to point 3 whenever 94) In Figure 24-1, the economy moves from point 3 to point 2 whenever
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880 Frederic S. Mishkin • Economics of Money, Banking, and Financial Markets, Seventh Edition 95) In Figure 24-1, the economy moves from point 3 to point 4 whenever 96) In Figure 24-1, the economy moves from point 2 to point 1 whenever (a) government spending declines. (b) taxes are increased. (c) investment expenditures unrelated to the interest rate decrease. (d) any of the above occur. Answer: D Question Status: Previous Edition
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