In an IS-LM model, an increase in autonomous spending a. will shift the LM curve to the right b. will lead to an increase in income and the interest rate c. will shift the IS curve to the left d. will lead to a decrease in income and the interest rate
Added by Jacob F.
Close
Step 1
This increase in autonomous spending can have several effects on the model. Show more…
Show all steps
Your feedback will help us improve your experience
Azat Nurmukhametov and 70 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
The IS-LM model is the foundation of long-run macroeconomics.
What is the new level of aggregate autonomous consumer spending?
Chandra J.
If an increase in autonomous consumer expenditure is matched by an equal increase in taxes, will aggregate output rise or fall?
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Watch the video solution with this free unlock.
EMAIL
PASSWORD