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In an IS-LM Model, an Increase in Autonomous Spending

Question 2

Multiple Choice

In an IS-LM model, an increase in autonomous spending


A) is caused by a fall in the interest rate
B) will cause a fall in the interest rate
C) will lead to an increase in income and the interest rate
D) will shift the LM-curve to the right
E) is caused by a movement along the IS-curve from left to right

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