Multiple Choice
A decrease in the interest rate causes
A) movement up the IS curve.
B) movement down the LM curve.
C) the IS curve to shift to the left.
D) the LM curve to shift to the right.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q45: The IS curve becomes steeper if there
Q47: The ISLM model can be used to
Q48: Along an IS curve as interest rates
Q49: The greater the marginal propensity to consume,
Q51: At any point below the current IS
Q52: An increase in money demand will shift
Q53: The IS curve has a positive slope
Q54: "Even if there is a liquidity trap
Q55: Monetary policy will be most effective when<br>A)
Q80: A lower price level causes us to<br>A)