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In the Situation Pictured in Question #13 Above, During the Automatic

Question 3

Multiple Choice

In the situation pictured in Question #13 above, during the automatic adjustment process to the disequilibrium in the balance of payments,


A) the BP curve will shift to the left (or vertically upward) .
B) the IS curve will shift to the left (or vertically downward) .
C) the LM curve will shift to the right (or vertically downward) .
D) the IS curve will shift to the right (or vertically upward) .

Correct Answer:

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