Question
In the IS-LM model, if the government performs contractionary fiscal policy and the central bank performs expansionary monetary policy: A) the interest rate decreases and
In the IS-LM model, if the government performs contractionary fiscal policy and the central bank performs expansionary monetary policy:
A) the interest rate decreases and output decreases.
B) the effect on the interest rate is ambiguous and output decreases.
C) the interest rate decreases and output increases.
D) the interest rate decreases and the effect on output is ambiguous.
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Macroeconomics
Authors: Stephen d. Williamson
5th Canadian edition
133847144, 9780134604794 , 978-0133847147
