Which of the following statements concerning Keynesian ISLM analysis is TRUE?

A) For a given change in taxes, the IS curve will shift less than for an equal change in government spending.
B) Changes in net exports arising from a change in interest rates causes a shift in the IS curve.
C) A fall in the money supply shifts the LM curve to the right.
D) Expansionary fiscal policy will cause the interest rate to fall.

A

Economics

You might also like to view...

A perfectly competitive market is characterized by a large number of small firms that produce a differentiated product

Indicate whether the statement is true or false

Economics

The differential taxation of inputs does not create an excess burden.

A. True B. False C. Uncertain

Economics