Which of the Following Does Not Shift the IS Curve

question 26

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:

Stock Return

The change in value of a stock investment over a period of time, including dividends, expressed as a percentage of the investment's initial cost.

Market Return

The total gain or loss experienced by an investment or a collection of investments in the market over a specified period, typically including both capital gains and dividends.

Regression Line

A line that best represents the connection between data points on a scatter plot.

Slope

Mathematically, the rate of change or gradient of a line, representing the ratio of the vertical change to the horizontal change between two points on the line.