Which of the Following Does Not Shift the IS Curve

question 26

Multiple Choice

Which of the following does not shift the IS curve?

• A) An increase in autonomous consumption.
• B) An increase in government spending.
• C) A decline in government spending.
• D) A fall in the interest rate.

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Definitions:

Compounded Semi-Annually

A method of calculating interest in which the accrued interest is added to the principal sum biannually, leading to "interest on interest."

Monthly Payments

Payments made once a month, often as part of a loan or rental agreement.

Borrow

To receive something of value with the promise to return it or its equivalent value at a later date.

Compounded Semi-Annually

A method of calculating interest where the interest is added to the principal twice a year, leading to interest on interest.