In each of the following situations, briefly explain whether the IS curve will shift and, if it does shift, in which direction it will shift:
In each of the following situations, briefly explain whether the IS curve will shift and, if it does shift, in which direction it will shift:
a. Consumers become more optimistic about their future incomes.
b. The federal government cuts the corporate profit tax.
c. The real interest rate rises.
d. Firms become pessimistic about the future profitability of spending on new information technology.
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Authors: R Glenn Hubbard ,Anthony Patrick O'Brien
1st Edition
013255352X, 978-0132553520
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