In the Four-Part Diagram Used to Construct the IS Curve,a

question 17

Multiple Choice

In the four-part diagram used to construct the IS curve,a decrease in the interest rate causes

• A)an increase in Ap and induced saving but does not shift the IS curve.
• B)an increase in Ap and induced saving and shifts the IS curve to the right.
• C)a decrease in Ap,an increase in induced saving,and shifts the IS curve to the right.
• D)a decrease in Ap and a decrease in induced saving,but does not shift the IS curve.

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