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I need the answer to this question 1:08 a docs.google.com Page 2: start new page and show work On a sheet of paper (entitled PAGE

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1:08 a docs.google.com Page 2: start new page and show work On a sheet of paper (entitled PAGE 2) show the work for each question. Recall the construction of the IS curve and assume that Consumption depends both on potential and current income. Which of the following statements is correct? O This change has no effect on the fiscal expenditure multiplier. O A tax cut will have a smaller effect on current income. An increase in government purchases O will have a larger effect on current income. An increase in government purchases O will have a smaller effect on current income. Consider the short-run model (IS-MP- PC). Suppose now that new accounting software makes the balance sheets of

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