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Suppose that investors and consumers have lost confidence about the future state of economy. According to the standard IS-LM model where the price level is
Suppose that investors and consumers have lost confidence about the future state of economy. According to the standard IS-LM model where the price level is fixed, this would lead to, other things being equal, Group of answer choices a rightward shift of the LM curve and a decrease in interest rates and income a leftward shift of the IS curve and a decrease in interest rates and income a leftward shift of the IS curve and an increase in interest rates and a decrease in income a leftward shift of the LM curve and an increase in interest rates and a decrease in income a leftward shifts of both IS and LM curves and no change in interest rates
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