The IS Curve Will Shift to the Right When Which

question 27

Multiple Choice

The IS curve will shift to the right when which of the following occurs?

• A)an increase in the money supply
• B)an increase in government spending
• C)a reduction in the interest rate
• D)all of the above
• E) none of the above

---

Definitions:

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Exchange Rates

The price of one currency in terms of another currency, which determines how much of one currency can be exchanged for another.

Balance Sheet

A financial report detailing a company's assets, liabilities, and equity held by shareholders at a particular moment.

Functional Currency

The main form of money used in the main economic setting where a business functions, as reported in its financial documents.