An Increase in the Money Supply Would Cause the IS

question 88

Multiple Choice

An increase in the money supply would cause the IS curve to

• A)shift up and to the right.
• B)shift down and to the left.
• C)remain unchanged.
• D)shift up and to the right only if people face borrowing constraints.

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Definitions:

Skeletal Muscle

A type of striated muscle that is attached to bones and is under voluntary control, responsible for movement.

Cardiac Muscle

The specialized, striated muscle tissue found only in the heart, responsible for contracting and pumping blood throughout the body.

Skeletal Muscle

A type of muscle tissue that is attached to bones and responsible for voluntary movements.

Constriction

The process of narrowing, tightening, or compressing, often referring to blood vessels or muscles.