An Increase in Autonomous Investment Spending Causes the IS Curve

question 100

Multiple Choice

An increase in autonomous investment spending 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:

Dividend Payment

A portion of a company's profits distributed to shareholders, typically on a quarterly basis.

Flotation Costs

The financial outlay a firm encounters when releasing new securities, involving charges for legal matters, underwriting, and registering the issuance.

Issuance

The act of making something available or distributing it officially, commonly used in the context of financial securities being issued to the public.