- According To The Islm Model Which Of The Following Would Occur With Increased Government Spending And Increased Money S 1 (37.64 KiB) Viewed 46 times
According to the ISLM model, which of the following would occur with increased government spending and increased money s
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According to the ISLM model, which of the following would occur with increased government spending and increased money s
According to the ISLM model, which of the following would occur with increased government spending and increased money supply through quantitative easing? (3 marks) (a) There would be a rise in equilibrium national output and a fall in the equilibrium rate of interest. (b) There would be a rise in equilibrium national output and an unknown effect on the interest rate. (c) There would be a fall in equilibrium national output and a fall in the equilibrium rate of interest. (d) There would be a fall in equilibrium national output and a rise in the equilibrium rate of interest.