The IS Curve Shifts When Any of the Following Economic

question 55

Multiple Choice

The IS curve shifts when any of the following economic variables change except:

• A)the interest rate.
• B)government spending.
• C)taxes.
• D)the marginal propensity to consume.

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Definitions:

Marginal Benefits

The uplift in utility or enjoyment gained through consuming or producing an added unit of a good or service.

Marginal Costs

The added cost incurred when one more unit of a good or service is produced.

Marginal Benefit

The additional pleasure or utility gained when one more unit of a good or service is consumed.

Marginal Cost

The additional cost incurred to produce one more unit of a good or service.