Any change that reduces desired saving relative to desired investment (for a given level of output) causes the real interest rate to ________ and shifts the IS curve ________.
A) increase;down
B) increase;up
C) decrease;down
D) decrease;up
Correct Answer:
Verified
Q12: A temporary supply shock,such as an increase
Q13: Which of the following would shift the
Q14: Which of the following will shift IS
Q15: A decline in wealth that doesn't affect
Q16: Because of a widespread fraud,people have decided
Q18: A temporary supply shock,such as a bumper
Q19: The IS curve shows the combinations of
Q20: A temporary decline in government purchases would
Q21: You have just read that the Bank
Q22: Looking only at the asset market,an increase
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