In the IS-LM model, if interest rates rise while output falls the ...

[AEWBW]

In the IS-LM model, if interest rates rise while output falls the
 
  a. money supply must have fallen.
  b. price level must have fallen.
  c. money supply must have risen.
  d. level of government spending must have fallen.
  e. none of the above.

Question 2

The policy of keeping tax rates stable as government spending fluctuates is known as ________.
 
  A) Ricardian equivalence
  B) tax smoothing
  C) crowding-out
  D) a tax smoothie

[brittrenee]

Answer to Question 1

A

Answer to Question 2

B