Factors that shift the IS curve involve:
A) interest rates and levels of GDP.
B) the quantity of money and the demand for money.
C) the trade balance.
D) exogenous variables affecting demand, such as a change in government spending or a change in the exchange rate.
Ans: D) exogenous variables affecting demand, such as a change in government spending or a change in the exchange rate.
You might also like to view...
As the number of firms in a market increases, the supply curve will shift to the right and the equilibrium quantity will rise
Indicate whether the statement is true or false
In 2006 and 2007 the U.S. faced an inflationary gap which would suggest the use of restrictive fiscal policy
a. True b. False Indicate whether the statement is true or false
Assume that an increase in Costa Rica's government budget deficit reduced desired national saving by 10 million colon. Assuming Costa rice is a small open economy, you would expect the government's action to
A) increase the current account balance by exactly 10 million colon. B) increase the current account balance by less than 10 million colon. C) reduce the current account balance by exactly 10 million colon. D) reduce the current account balance by more than 10 million colon.
Economists disagree on most economic issues facing an economy.
Answer the following statement true (T) or false (F)