In the standardIS-LM framework,the fiscal authority decreases both spending and taxes by the same amount.In which direction does the IS curve shift?

A. upward

B. downward

C. stays same

D. cannot be determined

In the IS-LM model,if there is a positive exogenous shock to consumption,what happens to income (Y) and the rate of interest (r)?

A. Y rises,r rises

B. Y rises,r falls

C. Y falls,r rises

D. Y falls,r falls

In the IS-LM model,if there is a positive exogenous shock to consumption,and the fiscal authoritywants to stabilize output,what policy could it undertake?

A. increase money supply

B. reduce government expenditures

C. reduce taxes

D. decrease money supply and taxes at the same time

In the IS-LM model,if there is a positive exogenous shock to consumption and the Fed wishes to stabilize output,which of the following policies could it undertake?

A. increase money supply

B. reduce money supply

C. increase taxes

D. buy government bonds