An Increase in Financial Frictions Causes the IS Curve to Shift

question 4

Multiple Choice

An increase in financial frictions causes the IS curve to shift ________ and the aggregate demand curve to shift ________.

• A) left; left
• B) left; right
• C) right; left
• D) right; right

---

Definitions:

Non-Technical Skills

Abilities that do not involve technical knowledge or expertise, such as communication, teamwork, problem-solving, and leadership.

Ethics Training

Educational sessions or programs designed to inform individuals about moral principles and standards of conduct relevant to their profession or daily activities.

Ethical Dilemmas

Situations where a person must choose between two morally correct but conflicting actions, and the choice made could lead to a violation of ethical principles.

Ethical Behaviour

Ethical behaviour refers to actions that are morally right and beneficial to both the individual and society, following principles of fairness, integrity, responsibility, and respect.