An Increase in Government Spending Generally Shifts the IS Curve

question 79

Multiple Choice

An increase in government spending generally shifts the IS curve, drawn with income along the horizontal axis and the interest rate along the vertical axis:

• A) downward and to the left.
• B) upward and to the right.
• C) upward and to the left.
• D) downward and to the right.

---

Definitions:

Themes Covered

Topics or subjects that have been addressed or explored in a discussion or piece of work.

Mnemonic Devices

Tools that help people remember information through patterns such as a sequence of letters or associations.

FOIL Method

A method used in algebra to multiply two binomials, where FOIL stands for First, Outside, Inside, Last.

Binomials

Pairs of words or terms, often connected by a conjunction, that express a single idea or entity in mathematics, biology, and language.