Which of the following are the effects of an increase in government spending in the IS-LM framework in a closed economy?
A. Increase in income by the multiplier times government expenditure.
B. Shift in the IS curve to the right leading to disequilibrium in the money market at the given level of interest rate.
C. Quantity of money demanded will be higher.
D. Interest rate will decrease.
E. Private investment will increase leading to increase in aggregate demand.
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