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Suppose that recent economic downturn in China led to a decrease in demand for American-made goods. What would happen to IS curve in the U.S.?

Suppose that recent economic downturn in China led to a decrease in demand for American-made goods. What would happen to IS curve in the U.S.?

A. IS curve will shift to the left

B. IS curve will shift to the right

C. IS curve will remain unchanged

D. None of the above

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