Which of the Following Would NOT Cause the IS Curve

question 79

Multiple Choice

Which of the following would NOT cause the IS curve to shift to the left?

• A) a decrease in government purchases
• B) an increase in consumer confidence
• C) a decrease in foreign demand for domestic products
• D) a decrease in the expected future profitability of capital

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Definitions:

Global South

denotes countries primarily situated in the Southern Hemisphere, often associated with lower economic development compared to the Global North.

Developing Countries

Nations with lower levels of industrialization, lower income per capita, and generally lower standards of living compared to more industrialized countries.

Southern Hemisphere

The half of Earth that lies south of the equator, known for having opposite seasons to the Northern Hemisphere.

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.