Economics · Macroeconomics - Policy Mix
In the IS-LM framework, if policymakers want to lower interest rates while keeping total output (GDP) constant, which policy combination should be implemented?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Decrease government spending and central bank sells bonds
- 2Increase government spending and central bank sells bonds
- 3Decrease government spending and central bank buys bonds✓
- 4Increase government spending and central bank buys bonds
Correct answer
Decrease government spending and central bank buys bonds
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Macroeconomics - Policy Mix MCQs →Want more practice questions on Macroeconomics - Policy Mix?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Macroeconomics - Policy Mix