An Increase in the Money Supply Would Cause the IS

question 88

Multiple Choice

An increase in the money supply would cause the IS curve to

• A)shift up and to the right.
• B)shift down and to the left.
• C)remain unchanged.
• D)shift up and to the right only if people face borrowing constraints.

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Definitions:

Restriction

A rule or condition that limits or controls what can be done.

Quantity

The amount or number of material or immaterial things considered as a unit.

Sum

The total obtained by adding together a set of numbers or quantities.

Restriction

A limitation or condition that confines or restricts something's scope or action.