According to the ISLM model, which of the following would occur with increased government spending and increased money s
Posted: Thu May 19, 2022 7:41 am
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.