A fiscal contraction shifts the curve to the left, leading to a(n) __- in output. A monetary contraction shifts the curve up, leading to a(n) ______ interest rates. in output and Group of answer choices A) LM, increase, IS, increase, lower B) IS, decrease, LM, increase, higher C) LM, decrease, IS, decrease, higher D) IS, decrease, LM, decrease, higher

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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A fiscal contraction shifts the
to the left, leading to a(n) __
output. A monetary contraction shifts the
curve up, leading to a(n)
curve
in
in output and
interest rates.
Group of answer choices
A) LM, increase, IS, increase, lower
B) IS, decrease, LM, increase, higher
C) LM, decrease, IS, decrease, higher
D) IS, decrease, LM, decrease, higher
Transcribed Image Text:A fiscal contraction shifts the to the left, leading to a(n) __ output. A monetary contraction shifts the curve up, leading to a(n) curve in in output and interest rates. Group of answer choices A) LM, increase, IS, increase, lower B) IS, decrease, LM, increase, higher C) LM, decrease, IS, decrease, higher D) IS, decrease, LM, decrease, higher
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