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    Macroeconomics Study Set 8
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    Exam 9: The Is-Lm-Fe Model: a General Framework for Macroeconomic Analysis
  5. Question
    Which of the Following Would Shift the FE Line to the Left
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Which of the Following Would Shift the FE Line to the Left

Question 51

Question 51

Multiple Choice

Which of the following would shift the FE line to the left?


A) a beneficial supply shock
B) a decrease in labour supply
C) an increase in the capital stock
D) a decrease in the future marginal productivity of capital

Correct Answer:

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