A decrease in wealth would cause the IS curve to
A) shift up and to the right.
B) shift down and to the left.
C) remain unchanged.
D) shift up and to the right only if people face borrowing constraints.
B
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The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($1,050), personal consumption expenditures ($4,800), imports ($370), exports ($240), and gross private domestic investment ($1,130). Personal consumption expenditures are approximately what percentage of this economy?
A. 60 percent B. 75 percent C. 70 percent D. 65 percent
If a consumer's purchases of a product increase as income increases, this good is classified as a(n):
A. normal good. B. inferior good. C. substitute good. D. complementary good.
If a college student stays home and watches a Netflix movie for $2 rather than going out to a $15 movie, this is an example of the
A) utility effect. B) value effect. C) substitution effect. D) income effect.
Firms ________ their ________ costs in the short run.
A. cannot change; total B. can change; overhead C. can change; variable D. can change; fixed