=+14. In each of the cases below, determine whether the IS curve shifts to the right or
Question:
=+14. In each of the cases below, determine whether the IS curve shifts to the right or left, does not shift, or is indeterminate in the direction of shift.
a. The real interest rate rises.
b. The marginal propensity to consume declines.
c. Financial frictions increase.
d. Autonomous consumption decreases.
e. Both taxes and government spending decrease by the same amount.
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Related Book For
The Economics Of Money Banking And Financial Markets
ISBN: 9781292094182
11th Global Edition
Authors: Frederic S. Mishkin
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