In the IS-LM model, when government spending and taxes increase by the same amount
a. income and interest rates remain unchanged.
b. interest rates and income rise.
c. interest rates and income fall.
d. changes in interest rates are indeterminate but income rises.
e. none of the above.
Question 2
In colonial America, work
(a) was required, at least for the lower classes, even for whites not bound in servitude.
(b) was required of all classes, wealthy or poor, slaves or free.
(c) was the decision of the individual, like it is today, except for slaves and indentured servants.
(d) was thought to be for the colored races, with white folks exploiting their labor.
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