An Increase in Government Spending Generally Shifts the IS Curve

question 79

Multiple Choice

An increase in government spending generally shifts the IS curve, drawn with income along the horizontal axis and the interest rate along the vertical axis:

• A) downward and to the left.
• B) upward and to the right.
• C) upward and to the left.
• D) downward and to the right.

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Definitions:

Satellite Lesions

Small skin lesions or sores that appear close to a primary lesion, often associated with conditions like fungal infections or viruses.

Inguinal Folds

The areas where the lower abdomen meets the top of the legs, a common site for skin irritations and infections due to moisture accumulation.

Rotavirus (RV)

A highly contagious virus that causes gastroenteritis, mainly in infants and young children, characterized by diarrhea and vomiting.

Diphtheria, Tetanus, Pertussis (DTaP)

A combined vaccine that protects against three serious bacterial diseases: diphtheria, tetanus, and pertussis (whooping cough).