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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
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. Consumers become more optimistic about the future of the economy.
b. Both government spending and taxes increase by the same amount.
c. The real interest rate decreases.
d. The government provides tax incentives for research and development programs for firms.
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