Which of the Following Does NOT Shift the IS Curve

question 45

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:

Goods and Services

Products and activities that fulfill the needs or desires of consumers, with goods being tangible objects and services being intangible activities.

Factors of Production

The inputs used to produce goods and services, typically classified into four main categories: land, labor, capital, and entrepreneurship.

Money

A medium of exchange that facilitates trade, serves as a unit of account, a store of value, and can be in the form of coins, notes, or electronic.

Comparative Advantage

The ability of an individual or country to produce a particular good or service at a lower opportunity cost than others.