Essay
For each of the following changes,identify whether there will be a shift in the IS curve or a movement along the IS curve.In each case identify the direction of the movement or shift.
a. The real interest rate decreases.
b. The government decreases tax rates.
c. Government spending decreases.
d. Investors become optimistic about future profitability.
Correct Answer:
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a. A decrease in the real interest rate ...View Answer
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Correct Answer:
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