When the Domestic Currency Appreciates,the IS Curve Shifts

question 54

Multiple Choice

When the domestic currency appreciates,the IS curve shifts:

• A) to the left, causing domestic interest rate to rise.
• B) to the left, causing domestic interest rate to fall.
• C) to the right, causing domestic interest rate to rise.
• D) to the right, causing domestic interest rate to fall.

---

Definitions:

Balance of Trade

The difference between a country's exports and imports of goods.

Imports

Goods or services brought into one country from another for sale or use.

Barter

The practice of exchanging products and services for other products and services rather than for money.