An Increase in Financial Frictions Causes the IS Curve to Shift

question 4

Multiple Choice

An increase in financial frictions causes the IS curve to shift ________ and the aggregate demand curve to shift ________.

• A) left; left
• B) left; right
• C) right; left
• D) right; right

---

Definitions:

Electronic Junk Mail

Unsolicited and often unwanted emails, typically sent in bulk for advertising purposes, also known as spam.

Junk Mail

Unsolicited or unwanted email messages, typically of a commercial nature, sent to a large number of recipients.

AI System

Artificial Intelligence System: Computer systems designed to mimic human intelligence, performing tasks such as recognizing speech, making decisions, and translating languages.

Spoken Words

Oral expressions or utterances used in communication; can also refer to live or recorded verbal presentations or performances.