In the Keynesian-cross model, an increase in the real interest rate shifts the expenditure line _____ and short-run equilibrium output _____. upward; does not change upward; decreases upward; increases downward; increases downward; decreases Solution downward; decreases .

1. In the Keynesian-cross model, an increase in the real interest rate shifts the expenditure line
_____ and short-run equilibrium output _____.
upward; does not change
upward; decreases
upward; increases
downward; increases
downward; decreases
1. upward; does not change
2. upward; decreases
3. upward; increases
4. downward; increases
5. downward; decreases
Solution
downward; decreases
5. downward; decreases