Ecs2602 assignment 3 pos - Study guides, Study notes & Summaries

ECS2602 ASSIGNMENT 3 – ONLINE ASSESSMENT (SEMESTER 2 – 2018) POSSIBLE QUESTIONS AND SOLUTIONS. Question 1 of 15 This question is based on the following diagram of an IS-LM model for an open economy A decrease in government spending causes ... A. a decrease in the demand for goods and the level of output; a decrease in the demand for money and the interest rate; a depreciation of the domestic currency and the trade balance deteriorates as exports increases. B. a decrease in the demand ...