2 Based on our understanding of the IS-LM model that takes into account dynamics, we know that a reduction in government spending willcause1つ選択してください:O A. an immediate drop in Y and immediate increase in i.O B. an immediate reduction in i and no initial change in Y.O C. a gradual reduction in i and gradual reduction in Y.O D. a gradual reduction in i and an immediate reduction in Y.

IS curve shows the inverse relationship between the interest rate and quantity. The IS curve is…

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Economics

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Based on our understanding of the IS-LM model that takes into account dynamics, we know that a reduction in government spending will
cause
1つ選択してください:
O A. an immediate drop in Y and immediate increase in i.
O B. an immediate reduction in i and no initial change in Y.
O C. a gradual reduction in i and gradual reduction in Y.
O D. a gradual reduction in i and an immediate reduction in Y.

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