Multiple Choice
Refer to the following figure when answering the following questions.
Figure 11.6: IS Curve
-Consider the IS curve in Figure 11.6. Holding the real interest rate constant, beginning at point e, if there is an aggregate demand shock:
A) the IS curve shifts right to point c.
B) the IS curve shifts right to point a.
C) the IS curve shifts left to point g.
D) there is a movement along the IS curve to point d.
E) Not enough information is given.
Correct Answer:

Verified
Correct Answer:
Verified
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