Which of the Following Would NOT Cause a Shift in the IS

question 35

Multiple Choice

Which of the following would NOT cause a shift in the IS curve?

• A) an increase in the domestic real interest rate
• B) an increase in consumer confidence
• C) a decrease in the expected future profitability of capital
• D) a decrease in government purchases

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Definitions:

Deductive

A logical process where a conclusion follows necessarily from the set of premises, provided the premises are true.

Hasty Generalization

A reasoning error where the conclusion is not supported by enough or impartial evidence.

Blizzard

A severe snowstorm characterized by strong sustained winds of 35 mph or more and lasting for a prolonged period of time, typically three hours or more.

Fallacy Of Accident

A logical error that occurs when an argument mistakenly applies a general rule to a specific case that is exceptional or atypical.