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Which of the following statements about the IS-LM model is / are correct?(could be multiple choice) A.In the Keynesian cross, an increase in taxes leads
Which of the following statements about the IS-LM model is / are correct?(could be multiple choice)
A.In the Keynesian cross, an increase in taxes leads to an increase in income.
B.If the marginal propensity to consume is 0.2, then the government spending multiplier is 1.25.
C.The money supply is an exogenous quantity in the IS-LM model.
D.In the IS-LM model, an increase in government spending leads to an increase in income and an increase in interest rates.
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