A change in which of the following will NOT shift the IS-curve?
A)autonomous investment
B)autonomous money demand
C)autonomous consumption
D)autonomous net exports
E)autonomous saving

Question

Quizplus · Accepted Answer

The IS curve represents the relationship between the interest rate and the level of income that brings the goods market into equilibrium. A change in autonomous money demand affects the money market, not the goods market directly, and therefore does not shift the IS curve. Changes in autonomous investment, consumption, net exports, and saving directly affect the goods market and thus can shift the IS curve.

A Change in Which of the Following Will NOT Shift