Multiple Choice
If the Federal Reserve decreases interest rates,
A) the IS curve will shift to the left and the level of planned expenditure will decrease.
B) the level of planned expenditure will move downward along the IS curve and thus increase.
C) the IS curve will shift to the right and the level of planned expenditure will increase.
D) the level of planned expenditure will move upward along the IS curve and thus decrease.
Correct Answer:
Verified
Correct Answer:
Verified
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