The IS Curve Shifts to the Right When ________

question 18

Multiple Choice

The IS curve shifts to the right when ________.

• A)autonomous consumption decreases
• B)taxes increase
• C)autonomous investment increases
• D)all of the above
• E)none of the above

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Definitions:

Budget Increase

An upward adjustment in the amount of money allocated for specific purposes, often reflecting growth or expansion in operations or projects.

Behavioural Decision Model

suggests that decision-making processes are influenced by cognitive biases, emotions, and social influences rather than being purely rational or logical.

Risk And Uncertainty

The exposure to the possibility of loss or damage and the lack of predictability in events or outcomes, respectively.

Optimizing Decision

The process of finding the most efficient, effective, or achievable decision under the given constraints, often using rigorous methods of analysis.