All else being equal, an increase in government spending would shift the ______ line to the ______, causing interest rates to _______ and the trade balance to _______.
A) LM; right; fall; fall
B) IS; right; rise; rise
C) LM; left; rise; rise
D) IS; right; fall; fall
Ans: B) IS; right; rise; rise
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Indicate whether the statement is true or false
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a. True b. False Indicate whether the statement is true or false
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