Refer to the Following Figure When Answering the Following Questions

question 23

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 11.6: IS Curve
-Consider the IS curve in Figure 11.6. Holding the real interest rate constant, beginning at point e, if there is an aggregate demand shock:

• A) the IS curve shifts right to point c.
• B) the IS curve shifts right to point a.
• C) the IS curve shifts left to point g.
• D) there is a movement along the IS curve to point d.
• E) Not enough information is given.

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A brass wind instrument with a flared bell and a bright, penetrating tone, played by blowing into a small mouthpiece.