Which of the Following Would Cause the IS Curve to Shift

question 12

Multiple Choice

Which of the following would cause the IS curve to shift?

• A) a change in the multiplier
• B) a change in business or consumer confidence
• C) an increase in autonomous tax revenue
• D) all of these would shift the IS curve.

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Definitions:

Cumulative Preferred Stock

A type of preferred stock that accumulates unpaid dividends, which must be paid out before any dividends can be distributed to common stockholders.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Dividend

A share of a company's profits distributed to its shareholders, usually paid in cash or additional stocks.

Convertible Preferred Stock

A type of preferred stock that holders can convert into a specified number of shares of common stock.