【曼昆 宏观经济学 经典】Mankiw 5e Chapter 11.pdfVIP

Mankiw 5e Chapter 11 According to the IS-LM model, an increase in government purchases causes a(n) A. increase in income and a decrease in the interest rate. B. decrease in income and a decrease in the interest rate. C. increase in income and an increase in the interest rate. D. decrease in income and an increase in the interest rate. 1 out of 1 Correct. The answer is C.When government purchases increase, the IS curve shifts to the right. This action leads to an increase in income and the interest rate. See Section 11-1. Suppose that the LM curve is vertical. An incr