The IS Curve Shifts When Any of the Following Economic

question 2

Multiple Choice

The IS curve shifts when any of the following economic variables change except:

• A) the interest rate.
• B) government spending.
• C) tax rates.
• D) the marginal propensity to consume.

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Definitions:

Deregulation

Cutting back or doing away with state authority in a certain field, often to foster greater competition in that field.

Automotive

Refers to the design, development, manufacturing, marketing, and selling of motor vehicles.

Railroads

Land transport routes using a series of tracks and stations for the movement of trains to transport passengers and goods.

Industrial Regulation

Governmental regulation of industries to ensure competition, control prices, prevent monopolies, and protect consumers.