For each of the following changes,identify whether there will be a shift in the IS curve or a movement along the IS curve.In each case identify the direction of the movement or shift.
a. The real interest rate decreases.
b. The government decreases tax rates.
c. Government spending decreases.
d. Investors become optimistic about future profitability.
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Q31: Figure 10.3 Q32: If the long-term real interest rate is Q33: Which of the following equations best represents Q34: Figure 10.3 Q35: Suppose that the marginal propensity to consume Q37: Other things equal,when the real interest rate Q38: If the short-term nominal interest rate is Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents