Within the IS-LM curve model, if the government cut taxes at the same time that there was an autonomous increase in investment demand, then
a. income would rise and the interest rate would fall.
b. income and the interest rate would rise.
c. income would rise but the effect on the interest rate is uncertain.
d. the interest rate would rise but the effect on income is uncertain.
e. the effects on both income and the interest rate are uncertain.
B
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Explain the concept of "learning by doing" with respect to infant industry protection
What will be an ideal response?
The Green Revolution has not resulted in
a. reduced food prices b. increased yields c. more irrigation d. more agricultural research e. The Green Revolution has resulted in all of the above.
Marginal revenue product equals the marginal physical product multiplied by the quantity demanded.
Answer the following statement true (T) or false (F)
The deteriorating-terms-of-trade argument has been used to justify import-substitution policies
a. True b. False Indicate whether the statement is true or false